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Workers face pension delay frustration

Workers face pension delay frustration

Category: Pensions

Updated: 13/04/2011
First Published: 13/04/2011

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 It is now over 6 months old so the content may be out of date.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 workers are being forced to put their retirement plans on hold as their pension funds are not large enough to support them, a new report has revealed.

In 2011, almost a quarter of potential retirees admit they will have to delay their retirement because they can not afford to give up work, according to Prudential.

Money worries mean people are having to work around six years longer than they intended.

Those who have reluctantly taken the decision to continue in gainful employment this year had, on average, hoped to give up work at age 62; they now expect to be 68 years old before they will be in a position to take their pension.

Four in ten of those putting back their retirement believe their finances are so far short that they will be at least 70 before they can afford to put up their feet.

The high rate of inflation is also playing its part, with the disposable incomes of pensioners being dented by the higher cost of living.

At the same time, savings rates remain at relatively low levels, reducing the income that pensioners receive from any savings they have built up to help supplement their pensions.

While times are undoubtedly hard, there are some steps that potential retirees can take to ensure they get the most out of their pension pots in retirement.

Finding the best annuity is an absolute must.

If you're approaching retirement, our annuity best buy charts are an ideal starting point when searching for the best annuity rates, and include well known providers such as SAGA, Aviva and Legal & General.

Alternatively, an online annuity planner service, such as that offered by Premier Retirement Services, will help you build your annuity and present you with a range of quotations for you to compare.

However, for those who want to avoid having to work longer than they have to, and who still have time on their side to make a difference, starting to save as much as they can as early as they can is the very best option.

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