A quarter of over-50s will delay retirement

| June 19, 2012 | 0 Comments
A quarter of over-50s will delay retirement

Saga, which provides finance products exclusively for the over 50s, claims that more than a quarter of people in this age group will work past the current state pension age of 65.

Based on 427,000 retirement dates given by people using its annuity service, 27 per cent of over 50s will work beyond the age of 65.

Last year 1.41 million people worked beyond state pension age according to the Office for National Statistics (ONS), nearly double the number delaying their retirement in 1993.

According to the ONS, the number of people delaying their retirement is increasing faster than the general population.

Saga suggests that people coming up to retirement age are being influenced by the government’s ongoing programme to increase to the state pension age.

Many people are working longer because they have insufficient pension to maintain a comfortable lifestyle, while others simply want to carry on working in a job they enjoy.

By November 2018 both men and women will receive their state pension when they reach 65.

The state pension age will then increase to 66 years by October 2020 and to 67 years by 2028, for both sexes.

It will then continue to increase in line with life expectancy.

In a statement, Saga said: “In 2012, the average retirement age will be 63 years, 130 days, which is 286 days later than in 2010 (62 years, 277 days).

“By 2025, people expect to work an extra two years and 186 days longer than today.”

Last month Saga called for auto-enrolment to include an option for workers to invest in ISAs as well as traditional pensions.

From October, employers will be required to automatically enrol their workers into a qualifying workplace scheme if they are not already in one.

Speaking at the 2012 Crowe Clark Whitehill pensions lecture, Saga director-general Ros Altmann suggested that workers should be allowed to access their own contributions into a workplace pension at times of significant need.

This would encourage workers to increase their personal pension contributions, Ms Altmann said.

Tags: average retirement age, delay retirement, Pension auto-enrolment, , state pension age

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