February 25th, 2019
More than half of Brits expect to work in retirement
Most British adults now expect to keep working past state retirement age because they do not have enough saved in their pension a new survey shows.
ING’s International Survey on Savings and Retirement shows that 54% of Brits now expect they will have to keep earning in retirement and of these, 58% expect they will work in the gig economy (a prevalence of short term contracts or freelance work) or temporary employment.
ING surveyed nearly 15,000 people worldwide, including 1,041 Brits. The survey suggests that at a time when the UK retirement age is set to increase to 66 in 2020, with additional rises set to take place over the next ten years, the assumption of a traditional retirement is fast becoming a thing of the past.
The survey found that 58% of Brits are concerned they will not have enough money in retirement, while 68% expect to have a worse standard of living when they retire. Worryingly, 13% of those surveyed think they will need to work for the rest of their lives, although there are also a large number of people who decide to continue to work past retirement age because they are still happy to do so, even though they may be able to afford to retire.
Depending on your NI contribution history, the state pension is currently £125.95 per week (£6,549.40 per annum) and according to a report published in 2017 by the Organisation for Economic Co-operation and Development, the UK state pension is ranked worst in the developed world. Although most workers now have access to a workplace pension, the ability to fulfil your retirement ambitions may still be a struggle to achieve. A combined employer and employee saving each month of 8% is all well and good but will most probably not be enough to fulfil the lifestyle you would like, especially if your of an age where you’re closer to retirement than some. That’s why it’s a good idea, whatever your age, to speak with a financial adviser to help you plan for your retirement and hopefully make your retirement dreams come true.
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Written by Kay Crooke, Associate Practice Director, Prosser Knowles Associates Limited