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Savers told to plan early for retirement

Savers told to plan early for retirement

Category: Pensions

Updated: 23/03/2010
First Published: 23/03/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
People have been told to save as much as they can for their retirement now, after it was revealed nearly three million UK adults had put their plans to give up work on hold.

Around nine per cent of people aged over 45 told Prudential they had delayed their plans to retire because of the effects of the recession or a personal financial emergency.

A further seven per cent said they had given up their retirement plans in favour of working, in an effort to boost their pension so they can retire at a later date.

Worryingly, around a quarter of those who had delayed their plans to retire, amounting to more than 710,000 people, feared they will now never be able to afford to retire completely.

The recession has forced nearly one in five people (17 per cent) to delay retirement for at least five years, while a further 51 per cent believe they will have to wait between 12 months and five years before stopping work.

"It is imperative for people to realise what's at stake before they come to retire," said Martyn Bogira, defined contribution solutions director.

"Do you really want to work an extra five years beyond the date you could retire? It's one thing to want to continue to work, but quite another to be forced to as a result of not having saved enough money to be able to retire.

"Anyone earning an income should try to begin putting money into a pension, or other savings product, as soon as possible as the cost of delay is potentially a delay in when you can retire."

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