Research from Baring Asset Management has revealed that over 9 million Brits have no pension provision, but expect to retire by the age of 62.
Baring’s research has also revealed that on average, Brits expect to be retired by the time they are 62, and 24% of those adults who are yet to retire have made no pension provision at all. People’s target age for retirement is particularly low among the younger age groups with those aged 18-34 years expecting to be able to retire at 61. This is in spite of government recommendations that the age of retirement for UK adults was set to increase to 66 by 2024, 67 by 2034 and 68 by 2044.
According to the research 33% people are expected to be able to retire between 60 and 65 years of age. Some 4.83 million people expect to be able to retire before they reach 55 and a further 7.43 million expect to retire between 55 and 60. 16% of Brits expect to have to work much longer than this as they do not plan to retire until 65 or later. The number of people planning on working until they are at least 75 is just 371,385.
An incredible 46% of people planning to retire before they reach 50 years of age do not even have a pension. 21% of people expect to be able to retire before 50 with a defined contribution (DC) scheme, and 17% expect to be able to retire on a defined benefit (DB) final salary related scheme. 11% of people planning to retire before their 50th birthday are relying on their property to do so. Only 30% of people with a DC scheme expect to be able to retire before they are 60. This rises to 42% of people with a DB scheme, and 48% of people who rely on their property as a pension.
Rob Lay, head of European sales, said: People have to start taking a more proactive approach to planning for their retirement. Relying on a DB scheme is no longer an option for many UK adults and relying on your property as a pension is a very risky strategy to take. These figures reveal a worrying trend of UK adults assuming that they will be in a position to retire without having made the necessary arrangements for funding that retirement.