As the retirement age hits people, data shows workers staying in jobs longer.
900,000 state pensioners face having to find jobs as warning issued
Nearly 900,000 state pensioners face having to find jobs in a pension crisis. As the retirement age hits people, data shows workers staying in jobs longer.
Men are now typically leaving the workforce at 65.8 years, while women retire at an average age of 64.7. Stephen Lowe, group communications director at retirement specialist Just Group, said: “These are some of the most skilled and experienced workers in the country.
“For the economy to grow, we need to see many more of these people returning to productive roles in the workforce.” Mr Lowe said: “With the rises in state pension age and life expectancy it is making more financial sense to work until later in life, which is what the figures reveal.”
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Among the 60-64 age group more than three-quarters (76%) had not retired. Of these, 39% said they felt prepared for retirement with 38% saying they did not feel prepared with 23% feeling neither prepared nor unprepared.
For the age 65-69 cohort which straddles State Pension Age, one-third (31%) were yet to retire. Of these, 45% said they felt prepared for retirement while 31% felt unprepared, with 24% neither prepared nor unprepared.
Mr Lowe said: “The lack of opportunities for this age group remains a real and growing problem.”
Mr Lowe said that it was important to use the resources available, including advice or guidance offered by an employer or the scheme, and potentially a regulated adviser.
He recommended everyone should use the free, independent and impartial government-backed Pension Wise service, which is aimed at helping those people considering accessing defined contribution pensions.
The service receives very positive ratings from its users. Mr Lowe said that the research shows that about three-quarters of working Baby Boomers have a workplace pension.
But this is split between 45% with a defined contribution pension and 39% with a defined benefit pension (only 10% have both). 17% have never had a workplace pension and a further 10% aren’t sure.