Daily Insurance Industry News
 
 
Daily Insurance Industry News
Tuesday 20th of February 2018
November 16, 2010

4.5m over 50s to work past retirement age

by Richard Kilner

Story link: 4.5m over 50s to work past retirement age

LV= has published its first Working Late Index, which reveals that more than 4.5 million over 50s expect to work beyond the state retirement age, by an average of six years.

Just over half (55%) believe they will work no more than five years past the state retirement age and a fifth believe they will end up working into their 70s or even 80s.

Women are twice as likely as men to believe they will work beyond retirement age, with 66% of the fairer sex foreseeing this compared to 34% of men.

Recently the Coalition Government announced that, by 2020, the retirement age will rise to 66, yet 60% of over 50s predict they will work beyond this age due to financial necessity.

However, a more positive reason for continuing working is cited by 10%, who intend to keep working in the belief that their pensions will increase in value.

Ray Chinn, LV= head of pensions, has stated that Britain’s over 50s had cut their retirement savings by £18bn over the course of the last 12 months, and work may be necessary to ensure they have sufficient income.

The Coalition Government’s Comprehensive Spending Review got the thumbs down from the over 50s, with 40% stating they would be worse off, 29% uncertain and just 2% stating they felt better off.

Chinn stressed the importance of continuing to save and emphasised that financial advice could make achieving financial security in retirement much smoother.

In October LV= gave the Coalition’s pension plans a mixed blessing, praising the abolition of contracting out pensions on a defined contribution basis, but raising doubts over new legislation to stop most transfers from defined benefit schemes to defined contribution schemes.

 

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