Research from Scottish Widows, a life, pensions and investment specialist in the UK, revealed that 26% of those aged 55+ say that they will retire later than the current state retirement age of 65 for men and 60 for women.
Of this age group, one in three (34%), or 1.5 million, say they might retire later because they do not have enough money in their pension plan to afford to stop working, while four out of 10 (42%) added that the state pension would not be enough to support the standard of living they would like in retirement.
This block to retirement for the ‘baby boomer’ age group would explain why they believe compulsion is necessary – more so than any other age group. Over half (53%) of all those aged 55 and over believe the nation should be forced to save.
Ian Naismith, head of pensions market development at Scottish Widows, said: The current generation of over 55s is definitely divided into ‘haves’ and ‘have-nots.’ The ‘haves’ generally have good employer pensions, often based on their final salary, and can retire at or before state pension age with good incomes. The ‘have-nots’ are discovering that they will have to work for longer than they might have expected just to make ends meet.
Research among the 55+ age group also revealed that 41% agreed that money is tight and they don’t have much to spare; 23% are more worried about their financial security than their health; and 26% say the only investment they have is the value of their house.