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Millions to work past retirement age

Millions to work past retirement age

Category: Pensions

Updated: 17/11/2010
First Published: 16/11/2010

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 It is now over 6 months old so the content may be out of date.

Millions of people aged over 50 fully expect to work past their retirement age, new figures have revealed.

Some 4.5 million of today's over 50s foresee working past their retirement age by an average of just over six years, figures from Liverpool Victoria (LV=) show.

The study comes just weeks after the coalition Government announced that the state retirement age will rise to 66 by 2020.

Whilst more than half (55%) of workers over 50 think they will remain in employment by no more than five years after their official retirement age, a quarter believe they will work for an additional five to ten years. A further one in five predict they will work well into their 70s or even their 80s.

Unsurprisingly, the majority (60% or 2.7 million) of those that expect to continue working past their 66th birthday will do so because they simply cannot afford to give up work. Another 10% said that they would do so in the hope that their pension increased in value.

LV= said that these findings reinforce issues raised earlier in they year, when it was found that cash strapped over 50s had reduced their pension contributions by almost £18 billion in 2009 as a result of the economic crisis.

"Britain's over-50s have already slashed their retirement savings by nearly £18 billion in the last year, and now it looks like many will have to continue working to ensure they have adequate income in retirement," said Ray Chinn, LV= head of pensions.

"This is not only because there is not enough in their pension pots, with 9% of over-50s saying they need to maintain an income to financially support their children.

"It is worrying to see that many over-50s expect to work up to 15 years past the state retirement age, and in some cases are working even more hours than they did earlier in their careers."

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