By Claire West
New findings have shown that 4 million over 50s are to work beyond retirement age, likely due to poor performing pensions and not being able to afford to retire.
The research, conducted by insurer LV=, also revealed that one in five of the over 50s expected to continue working see themselves in employment until well into their 80s. 55 per cent anticipated remaining in the workforce for five years, while a quarter said they would need an extra five to ten years. The number of women who said they would have to work past retirement was nearly twice as high as for men.
Recently, the Government announced an end to the Default Retirement Age which allowed employers to cut staff once they reached 65. The state retirement age will also be increased to 66 from 2020 for both men and women. While currently men retire at 65, women will see their pension age increase by six years from the current 60.
Other research has shown that the economic crisis has reduced the amount over 50s contribute to their savings by nearly £18 billion in the last year. Over 50s have been squeezed by a rising cost of living, along with child education fees and expenses towards their own parents retirement.
Samir El-Alami of PensionCalculator.org said: "It is clear for everyone to see that there is something wrong with the way we have and still are saving for our retirement in Britain. It is true that some pensions may not perform well, but the fundamental issue underlying Britain’s pension crisis is the lack of a retirement saving culture — people simply are not saving enough.
"It is important that the government takes steps to push people in to planning for their future now, otherwise I can only see these already depressing figures getting a whole lot worse.”
www.PensionCalculator.org is a free online resource dealing with all things pension and annuities related. Set to be launched in the next few weeks, the site includes pension and annuities calculators, performance comparison tables, reviews and expert assistance to help you plan your retirement.