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24 Sep 2014

1 In 3 UK Workers Delaying Retirement

New research reveals that thousands of working people in the UK have had to put off their retirement in the last five years, an article on Staffing Industry reports.

Conducted by Saga, the report surveyed 9,000 workers aged 50-59 and found that an increasing amount of older workers are staying in the job market due to financial pressures. In fact, one in three respondents stated that they expect to work longer than planned, and one in 10 anticipated to work “a lot later” than planned.

Current retirement ages in Britain stand at 65 for men and 63 for women. However, in the Pensions Acts of 2011 and 2014, the Government established that the retirement age for women would rise to 65 by 2018, then both sexes would rise to 66 by 2020 and 67 by 2028.

In terms of the job market, an increasing number of older workers staying in work could have a significant impact on the next generation, the article notes. Younger professionals will have to compete with a greater number of experienced older workers which could limit their opportunities for career progression.

The findings also reveal that the myth of a ‘golden generation´ enjoying large pension pots is false; rather, the higher state pension age combined with low interest rates on savings means that they have to work for even longer.

While one in ten respondents said that they were staying in work to “fund a better retirement,” over a third said that they delayed leaving their job for financial reasons, implying that their pension pots were simply too low to retire on.

Almost half of those deferring their retirement (44%) planned to stay in their current roles and hours, whilst only 4% intended to go for another job. Just 40% of respondents planned to reduce their hours.

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