Over-50s face 11-year retirement delay
People over the age of 50 will need to work for a further 11 years after they reach state pension age according to a new report.
The Pensions Policy Institute claims that those who are unable to carry on working will struggle to maintain their standard of living.
The report suggests that a single person will need £211 per week minimum to achieve an acceptable standard of living, while a couple will need £303.
The Institute estimates that 85% of working people in the over-50 age group will have sufficient state and private pension income to reach this level.
However, in order to maintain their lifestyle on around two-thirds of their previous income, 5 per cent will need to work and save for six years beyond state pension age, while 45 per cent will need to work for a further 11 years.
This would mean that they wouldn’t retire until they reached the age of 77.
Carers and people with health problems, who are unable to work, will be at a serious disadvantage.
Niki Cleal, director of the Institute, said: “This demonstrates that many people need to start saving more today, if they want to avoid having to work much longer than they planned and want to have an adequate retirement income in the future.”
Clive Bolton, a director at Aviva which worked with the Pension Policy Institute on the report, said: “Retirees now face both an increase in longevity and a challenging economic environment, with many remaining economically active past the state pension age.
“This report provides a much needed assessment of the actual impact working later in life could have on retirement incomes.”
Earlier this month the International Monetary Fund (IMF) warned that a faster than expected increase in life expectancy rates could add £750 billion to the amount the government will have to pay out in pensions by 2050.
The IMF claims that the government and the financial sector are currently underestimating how quickly life expectancy will rise by around three years.