2005
(12/09/2005) 20.3 million Brits prepared to work beyond 65 as poor pension planning threatens traditional retirement - new research
- Four in ten working Brits don't think they can afford to retire comfortably
- 41% of those between 16 and 54 expect the state pension to have been cut in value by the time they retire
The majority of working Brits (59%), equivalent to more than 20.3 million people, are prepared to work beyond 65 in order to supplement their pensions, according to new research from AXA. 7% expect to have to work past 70 with a further 7%, mainly among the less well off, saying they don't believe they will ever be able to stop working completely.
And over four in ten (42%) of working Brits do not think they have made sufficient pension provision to provide a comfortable retirement income with 8% saying they have not made any pension provision at all. But the dream of retiring early is still real for many, with 38% saying they expect to retire by the time they reach 60. Perhaps unsurprisingly, this is more heavily concentrated among the better-off socio-economic groups.
The survey also revealed that Brits do not expect to be able to rely on the state pension with 41% of respondents aged between 16 and 55 expecting it to be worth less by the time they retire. Nearly 1 in 3 Brits (30%) from the same age group expect the state pension to be means tested by the time they retire and only 15% expect it to have increased in value.
The survey found that men are most likely to consider working beyond the current retirement age with around two-thirds (63%) saying they would be willing to supplement their pension by working. However, women are not far behind; with more than half (54%) saying they too are prepared to work beyond 65.
Geographically, those in the south are less confident than their Northern or Midlands-based counterparts of having made adequate provisions for a comfortable retirement. 43% of Brits living in the South believe they will have a comfortable income based on provisions they have made, compared with 50% of people in the North, and 52% of people from the Midlands.
Steve Folkard commented: "These are revealing figures that demonstrate the impact that working Brits fear inadequate pension provision will have on their retirement plans.
"While some still expect to retire by the time they reach 60, it appears that the majority of people have little confidence that they will be able to afford to retire comfortably and are preparing themselves to keep working beyond the existing retirement ages.
"Extending the retirement age is one of the options the Government will consider in its forthcoming reform of pension provision. In the meantime, given there is little confidence in the state pension to provide an adequate retirement income, we strongly encourage people to start planning early if they do want to stop working at current retirement ages."
- Ends -
Notes to Editors
The survey was conducted over the phone by TNS from April 8th - 24th 2004. A representative sample of 1,797 people were interviewed across the UK.
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