Increased levels of debt and pension savings shortages are forcing millions of people in their 50s to postpone retirement by around eight years, according to an Aviva report.

The pension provider discovered that 40 per cent of those 50- to 60-year-olds questioned are expecting to have to stay in work until they are at least 70. Just five per cent claimed to be financially secure enough to stop working in their 50s.

Eight Years More Work

The Aviva report, featuring data amassed from interviews with 2,000 employees and 500 companies, found that more than a third (36 per cent) of people employed in the private sector over the age of 50 now predict that they will retire later than they thought they would at the age of 40, and the average delay was expected to be eight years.

The demise of lucrative final-salary schemes and the stock market-reliant policies they have been replaced with are causing many of the concerns amongst private sector employees in their 50s.

In a climate where a second job may be more attractive to people in their 50s than early retirement, the research also discovered that almost half of those questioned felt that they did not have enough in their pensions savings pots and that they would not be able to live on what was provided by the state pension – as described on the government website at https://www.gov.uk/state-pension/what-youll-get. 

Bleak Mortgage Outlook

Debts are also a concern, leading to many over 50s turning to the companies to enquire about an IVA or to help improve their financial situation, and many people in this age group are now predicting that they will still be paying off a mortgage when they reach 60.  Some folks are deciding to sell there houses and get a small bungalow then pay off their mortgage, get a bungalow and extend their land with a Conservatories Cheltenham company found at links including  https://www.firmfix.co.uk/conservatories/.

Calculations show that a person will need almost £200,000 in private pension savings if they want to finish work at 65 and live on two-thirds of Britain’s average yearly pay, which currently is £27,600, even if they are entitled to the full state pension.

There is some good news for those people who have to work past 65, however, as the Aviva report reveals that workers in this age group say they get a greater sense of satisfaction from their jobs than those in younger categories, whilst 64 per cent of over-50s said they felt valued by employers.

Edward Bertrand