Pension crisis means no retirement for 10% of Brits

Pension crisis means no retirement for 10% of Brits

24 August 2010 / by Rebecca Sargent

The pension crisis facing Britain has led one in 10 Brits to give up on any hopes of retirement.

The statistics from Baring Asset Management reveal that 10 per cent of the working population – equivalent to 3.5 million people – have no plans to retire, while 42 per cent are unable to plan when they will be able to retire.

The 2010 statistics reflect the impact of the financial crisis on pensions, as the responses in 2008, before the crisis hit, reveal that 100 per cent of Brits were confident that they would be able to retire, and just one per cent were unclear as to what age they would be able to retire at.

Commenting, Marino Valensise, chief investment officer at Barings said: "Our research shows that, for a large number of people, the ability to retire is now uncertain. A combination of increased longevity, a rise in the cost of living, and people not saving enough means that more people are being forced to work beyond the age of 65. They simply can't afford to stop working."

 And, according to the stats, the number of people who are giving up on retirement increases the older the respondents get. The numbers show that 15 per cent of people aged between 55 and 64 have given up hope, while 36 per cent of people aged 65 and over do not have any plans to retire.

Valensise adds: "For those approaching retirement, it is a difficult backdrop, with economic uncertainty still rumbling across all markets. People have worked hard for retirement and a few extra decisions, such as taking professional financial advice and ensuring their investment portfolios are correctly positioned, could make all the difference."

© Fair Investment Company Ltd