Older workers forced to delay retirement
Around 40 per cent of over-50s expect to work until 70 or older due to insufficient pension savings and lingering debt, according to research from insurer and pension provider Aviva.
This means that millions of workers in their 50s may be forced to postpone their retirement due to a lack of pension savings and high levels of debt.
The research by the insurer found that in the private sector only five per cent said they were financially capable of retiring in their 50s, while more than one in three (36 per cent) private sector employees aged 50 and above now expect to retire at a later date than they had envisaged when they were 40.
The average time gap between when these people thought they would retire versus when they think they will now retire is eight years, according to the study.
Aviva believe the collapse of generous final-salary-based pension schemes and their replacement with policies that rely on stock market performance to determine pension pay-outs is the reason for retirement fears amongst private sector workers in their 50s.
The research also found that nearly half of those surveyed believed that they had not saved enough into their pension, and that the amount available through the state pension would not be enough to support them in retirement.
To add to their worries, lingering debts are also a continuing issue among today’s 50-year-olds, with many expecting to have to pay a mortgage well into their 60s.