Recession 'forces 1.8m to delay retirement'

27/08/2009

The squeeze on pension pots caused by the economic downturn has forced 1.85 million people - or over one-third of those aged 55 or over - to postpone their retirement plans and keep on working.

According to the Retirement Nation Survey published by MGM Advantage, 23 per cent of this age group will now have to work beyond 65 after seeing their pension funds "decimated" by last year's stock market crash.

The retirement income specialist said a "huge proportion" of people approaching retirement do not realise the potential drop in income they could experience when they stop working.

Its research found that 32 per cent of over-55s are "not prepared at all" for retirement, with another 35 per cent admitting to having done nothing to prepare for when they give up the rat race.

MGM Advantage director Craig Fazzini-Jones said: "Millions of people nearing the end of their working life have been forced to slog it out for a few more years to see if their pension pots will make any kind of recovery."

Research by the Life Trust indicates that the average cost of a 20-year retirement in the UK is £413,000.

Tags; Current UK Economy, Retirement Money Problems,

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