Insufficient pension savings mean half of workers cannot retire this year

People who planned to retire this year may have to work longer in order to afford a comfortable retirement. Pension pots are not large enough for many people who had planned to retire this year. Almost half of workers cannot afford to retire in 2011 and may continue to work for up to ten more years to boost their inadequate pension pots, according to a new study. The research, carried out by Prudential, found that a third of the people who will reach retirement age this year would consider working for a couple more years if it meant they would receive a larger retirement income. A fifth of participants in the poll said they would work for an extra two to five years.

Men and women retiring later

Workers are delaying their retirement and staying in paid employment for longer. Retirement figures show that both sexes are opting to give up work later. The average age that men and women choose to retire has risen over the years, according to figures revealed by the Office for National Statistics. Between 2004 and 2009 the average age at which men stopped working rose from 63.8 years to 64.5. During the same period the average retirement age of women increased from 61.2 to 62 years.

Compulsory retirement to be scrapped and state pension age to rise

The government has announced a further piece of legislation which will change the face of retirement in the UK. The Default Retirement Age (DRA) of 65 is to be scrapped from April 2011. As a result of the proposed legislation employers will no longer be able to dismiss an employee just because they turn 65. The Employment Relations Minister Edward Davey told the BBC it would still be possible for employers to force people to retire if they were no longer up to the job. "I think this [change] is really beneficial and should not be the problem some people suggest," he told the ...

Retirement age change should be delayed say business leaders

The traditional retirement age of 65 should not be changed until the legal issues relating to the planned move are explained further. Businesses are asking the government to stall the plans to change the retirement age. A business lobbying group has urged the government to delay the changes planned for the increase in the national retirement age until more guidance becomes available. The CBI has warned that the plans need to be clarified before the default retirement age (DFA) of 65 is abolished in April 2011. The organisation argued that that the number of unfair dismissal claims could rise if the legal issues surrounding the plans are not explained to businesses in a simpler and more coherent fashion.