Over 45s with kids unprepared for retirement

| November 24, 2011 | 0 Comments
Over 45s with kids unprepared for retirement

People aged between 45 and 64 whose children are still living at home are much less likely to have made financial plans for their retirement than those in households with no children, according to new research.

A study by Standard Life revealed that 49 per cent of this age group, with two or more children at home, had no retirement plans in place compared with 35 per cent without children.

Standard Life’s head of pensions policy, John Lawson, said: “There is obviously only so much money to go round.

“But the loss of pension can be a forgotten cost for many when making decisions, in particular by going part time.”

The study also found that people are more likely to retire later if their children are still at home, with 10 per cent of this group saying they planned to retire between 71 and 75, compared with 2 per cent of those without children living with them.

Standard Life suggests that the loss of pension is often not taken into account when people with children make lifestyle decisions such as going part time.

As part of the study it has published a number of tips on financial planning including asking for a state pension forecast and deferring taking the state pension in order to increase future benefits.

LV=’s latest Working Late Index reveals that 6.1 million people over the age of 50 expect to work after the current state retirement age.

On average, people are expecting to work for an extra six years which would mean men retiring at 71 and women at 66 based on today’s retirement age.

Fify-one per cent said the main reason for working later was affordability, while 11 per cent hoped to increase the value of their pension by delaying retirement.

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