Retiring in your early sixties appears to be off the table for most people as one third (33%) of the nation’s workers anticipate retiring beyond the age of 70, research from Fidelity International1 has shown....
Ed Monk, associate director for Personal Investing at Fidelity International (Photo © Fidelity International)
With the recent Cridland report accelerating the rise in State Pension Age to 68 by 2039, employees seem to have got the message with only half (51%) anticipating any sort of retirement before age 68.
Unsurprisingly, younger workers seem to anticipate working the longest with two fifths (40%) expected to go to 70 or beyond however, it’s not all roses for those aged 55+with 24% not expecting to put their feet up before their seventh decade.
And despite a public push to promote the benefit of working into later life, the later retirement dates don’t seem to be through choice with only 9% overall saying that they don’t want to retire.
Ed Monk, associate director for Personal Investing at Fidelity International said: “It’s been clear for some time that the days of being handed the embossed fountain pen at age 60 have more or less gone. Today’s workers appear to be under no illusion that they will need to work for longer and, for most, it will be through necessity.
“Of course there are limits on how far this is possible. Even the gradual rises in state pension age already scheduled, however necessary, will be a worry for those in physically demanding work. And even if your work is something less strenuous that you enjoy few people will want to work flat out until 70. So what can you do?
“Well, start saving as early as you can, even if you don’t think the amount you can afford to put aside will make a big difference. Delaying pension contributions by ten years can halve the size of your pot - for example, someone saving £200 a month from age 25 onwards will reach a fund of £706,261 but delay this until 35 and the amount nearly halves to £362, 1072. If you’re not already, enrol into any employer pension scheme available to you, and make the most of any offer to match your contributions. Beyond that, consider putting money away into a SIPP or an ISA - it may not guarantee a life of yachts and fast cars but it could help you retire a few years earlier.”