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Workers urged to start pension saving early

Workers urged to start pension saving early

Category: Pensions

Updated: 10/11/2009
First Published: 10/11/2009

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 It is now over 6 months old so the content may be out of date.

People have been warned they need to start saving for their retirement earlier or face working a lot later into life.

New research from Prudential has revealed UK businesses are bracing themselves for a surge in staff looking to delay retirement.

Nearly a quarter of firms surveyed said they expected staff to work beyond retirement age in the next 10 years, with the amount of the workforce who are past traditional retirement ages predicted to more than double to 1.8 million.

In the last year alone, seven per cent of firms reported an increase in employees looking to continue working beyond their retirement age.

Martyn Bogira, Prudential's Director of Defined Contribution Solutions, said that as health and longevity continued to improve and people had to look to fund a longer life in retirement, it was inevitable that compromises would have to be made.

"The statutory retirement age for men and women is due to rise to 68 by 2046, so working longer will be a fact of life for those entering the workforce today. However, these findings suggest that increasing numbers of pensioners will be forced to work later far sooner than this.

"Workers face the stark choice of either having to save more for their pension from an earlier age or having to work longer if they are to avoid taking a significant drop in their standard of living in retirement. Early pension saving is critical and we strongly encourage people not to delay starting a pension."

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