Would-be pensioners forced to work longer amidst debt squeeze
There are fears that even the wealthy will be forced to work longer, after a survey, by pensions company Heartwood, found that four in ten wealthy people approaching retirement age feel they must work for five years longer than expected.
The survey found that two-thirds of those questioned who earned more than £50,000 a year are planning to enter semi-retirement rather than full – which means they keep working on a part-time basis.
The Office of National Statistics (ONS) recently released figures showing that the number of people paying into a workplace pensions has reached a 55-year low.
830 people over the age of 50 earning more than £50,000 working in a managerial or professional capacity were questioned. One third say they cannot afford to retire so will continue working, whilst one in five say the reason they need to keep working is to support their children.
Heartwood’s chief executive Simon Lough, told the Telegraph: “Longer periods of semi-retirement are increasingly becoming the norm amongst even wealthier people in their fifties and sixties. Even compared to a year ago the number of semi-retired people has grown by 43 per cent and we would expect this trend to continue.”
Industry experts have offered a stark warning that, with inflation causing the cost of living to rise whilst incomes continue to fall, pensioners’ quality of life is being “hammered”.