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Economic climate shelves retirement plans

Economic climate shelves retirement plans

Category: Pensions

Updated: 16/06/2010
First Published: 16/06/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
The unquestionably tough economic environment is forcing people to put the kybosh on their retirement plans.

Well over half (60%) of Britons believe they will have to delay the date when they can finish work as a result of the fiscal conditions that continue to hamper the UK.

Over a third think their eventual date of retirement will be delayed by over five years, research from Aon Consulting has found.

It represents a marked turnaround from previous years when Britons revealed an aversion to working for any longer, with results showing that nearly one in three stated they would rather stop working earlier and receive less income than have the minimum retirement age extended.

Females believe they will be more likely to have to continue working for longer than was originally planned, with 62% prepared to shelve retirement, compared with 57% of men.

There is also a difference of opinion in age groups. Almost seven in ten (69%) UK workers aged between 35 and 44 believe they will have to delay their retirement date because of the economy.

Such sentiment is less common in 55-64 year olds, with less than half (47%) of the opinion that they will be forced to toil on after they had planned.

"Recent events have shown the value of pension funds can go down as well as up, which has come as a shock to many people used to gold-plated defined benefit pensions and state benefits," said Oliver Rowlands, head of retirement, Europe, Middle East and Africa, at Aon Consulting.

"As responsibility for retirement savings has moved from the state and corporations to the individual, people are increasingly realising they need to take an active interest and take steps, such as delaying retirement, to make sure they are financially secure once they finish work.

"This is an increasingly a common picture across Europe and particularly in Britain."

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