When do you hope to retire? You may be thinking of aligning with state pension age and retiring at 65, while others hope to retire considerably sooner – but unfortunately, a growing number are expecting to work well past traditional retirement age, because they simply can't afford to do otherwise.
The figures, from employee benefits consultancy Portus, show that 66% of survey respondents expect to work beyond the age of 65, while 11% expect that they'll still be working after their 76th birthday, or that they'll never retire at all. The main reason for working beyond traditional retirement age is that they don't think they'll have enough to live on (74%), while 13% think they'll still need to provide financial support to their children, and 4% said the same about their grandchildren.
The experiences of those already past the age of 65 back up these figures, with 50% saying that they're still in work because they don't have enough money, while 22% continue working to help children and 6% for their grandchildren. Furthermore, while 42% of workers believe that they'll have "adequate" income in retirement, only 7% are very confident of that – and 10% are very unconfident.
There are still those who could choose to work past 65 because they enjoy it (26%) and fear getting bored if they stop, but the overall message is still one of anxiety about retirement incomes. In fact, around 10.3% of the UK workforce is currently aged 65+, but 63% of recruitment consultants expect this proportion to rise to 15% or over by the year 2020, while one in five believe that 20% or more will be in this age group.
If you're one of the 26% who would relish the chance to continue working beyond the age of 65, there's nothing much for you to worry about, but if you're worried about being forced into it because of a lack of retirement funds, it's time to get serious – and the key thing to do is start saving.
It's only by building a suitable savings pot that you stand a better chance of being able to retire when you want to, because with a decent pension behind you, you'll be able to secure a higher level of income. How you go about it is up to you – be it in a workplace pension, a personal version, an ISA or even a combination of the above – but the key is to start early, because the sooner you start saving, the bigger your pension pot will be.
Find out more about workplace pensions and automatic enrolment to boost your chances of retiring when you want to
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