One in seven admit they may never retire

Posted on August 21st, 2013 | Categories - News

One in seven admit they may never retire 150pxAccording to new research conducted by Baring Asset Management, more than five million individuals have no plans to retire.

The survey, which involved 2,000 people aged between 18 and 65, revealed 14% of respondents have no plans to retire and will continue to work for as long as they can.

The figure has been rising steadily since 2011, when it stood at 10%. It rose by 2% again in 2012 and by yet another 2%, to 14%, this year. Taking it to the highest figure recorded by an asset manager since Barings started this research back in 2008.

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Furthermore 40% of people surveyed said they were unsure when they will be able to retire; a 2% increase on last year. However, the percentage of people who do not yet have a planned retirement age, varies by age:

  • 54% of 18-24’s
  • 39% of 25-34’s
  • 39% of 35-44’s
  • 40% of 45-54’s
  • 34% of 55-64’s
  • 18% of over 65’s

Later retirement

The majority of workers now believe they will be able to retire at the age of 64, up from 62 in 2009. A similar report conducted last month by AEGON UK, revealed that 30% of young workers believe they will be able to retire before the age of 65. Whilst 13% are perhaps more realistic, believing they will retire at 70.

According to research a massive 12.5 million individuals have no pension, with many people blaming the ever rising cost of living, as this prevents many from saving money for old age. However, it is hoped that the introduction of Auto Enrolment will see many more people saving effectively for their retirement.

Marino Valensise, Chief Investment Officer at Barings, said: “It is clear that uncertainty is increasing for many people around retirement plans, with more people unable to say exactly when they plan to retire and the average age continuing to rise.”

“Significant numbers of people nearing traditional retirement age reported they did not know when they will be able to retire and the worry is that a lack of sufficient financial planning and pension provision combined with increased longevity is having a real impact on a large proportion of the population.”

Marino concluded: “The fact that so many people say they do not have a pension, including relatively affluent people and those in the 55-64 age segment, underscores the need to focus on effective retirement planning.” (Source: Telegraph)

Prior to the research, it was revealed that the number of men without a pension has fallen by 4% from 30% in 2008, whilst the amount of women without pensions has grown, from 39% to 42%.

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