Retirement money worries to increase

11/11/2009

Hard-up over-50s will be forced to keep on working past the official retirement age in ever-increasing numbers, new figures show.

Prudential quizzed finance directors at large UK firms and found that 24 per cent believe employees will work past 60 for women and 65 for men in the next ten years.

The firm added that this group will double in number over the decade, rising from 2.6 to 6.3 per cent of the total UK workforce.

Financial damage from the credit crunch, which has shrunk pension pots, as well as a lack of retirement savings could contribute to the problem.

Martyn Bogira, Prudential's director of defined contribution solutions, said: "As health and longevity continue to improve and people look to fund a longer life in retirement, it is inevitable that compromises have to be made."

He added: "Workers face the stark choice of either having to save more for their pension from an earlier age or having to work longer if they are to avoid taking a significant drop in their standard of living in retirement."

Kevin Still, EuroDebt director, commented: "Our concern is not just that people approaching official retirement age will not have adequate funds in their pension, it is also the case that they still have very sizeable levels of unsecured debt and often still have a mortgage to pay. EuroDebt has a large number of over sixty clients on Debt Management Plans (DMPs) and the average level of unsecured debt is over £28,000 with seven creditors.

"For some it is a necessity to continue to work and these money worries can have a direct impact on the health of these individuals, as has been highlighted in recent research on the link between debt and mental health."

Current government plans state that the retirement age for both men and women will increase to 68 years old by 2046.

Tags; Retirement Money Problems, Job loss,

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