More over-50s to work beyond retirement

More over-50s to work beyond retirement

The number of people over 50 who expect to go on working beyond the state retirement age has risen by 43 per cent since 2010, a report by LV= has found.

Around 6.5 million over-50s – 4.1 million women and 2.4 million men – now intend to carry on working later in life, according to the annual Working Late Index from LV=. Men will work an average of 6.9 years beyond the state retirement age, with their female counterparts averaging 5.8 years’ extra service.

More than half (52 per cent) of working over-50s who expect to work beyond the state retirement age cite ‘affordability’ as the determining factor. LV= also found that of the 4.3 million people over 50 who had retired and then returned to work since 2010, 14 per cent did so because their personal pension was not providing enough income. A further 9 per cent found that their state pension was insufficient to support them.

Ray Chinn, LV= head of pensions, reiterated the importance of early retirement planning. He said, “With the Government increasing the state pension age we would hope that those approaching retirement wouldn’t feel they need to work beyond it. Unfortunately, this is not the case as many find that they have insufficient funds in their pension pots.”

“Regardless of how close people are to retirement, it is essential that saving remains a priority. The earlier in life you can start saving the better, but it’s never too late to make a significant difference to your pension pot.”

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