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Pension plan disappointment means delayed retirement for 2 million over 50s

15 July 2009 / by Rebecca Sargent

Two million over 50s have been forced to delay their retirement date as the recession eats into their pension plans, research from LV= has revealed.

Worryingly, a further 25 per cent of over 50s say they do not have a clear idea of when they will be able to give up work.

The State of Retirement Report from the investment, pensions and insurance group also found that 70 per cent of over 50s are more worried about their retirement income than they were just one year ago.

Commenting, Mike Rogers, LV= Group chief executive said: "Already one in ten of the UK's over 50s are not fully retired, and this figure could rise rapidly unless those nearing retirement take steps to increase their savings."

In fact, the study found that just seven per cent of over 50s have felt able to increase their level of long term savings, while 20 per cent have had to reduce the amount they put away.

Mr Rogers adds: "In the midst of recession, it is understandable that people are focusing more on their everyday costs and on supporting their families. But it is worrying that one in five has felt forced to reduce their savings towards retirement at this important time."

Everyday living costs are the largest cause for concern for over 50s when it comes to retirement worries. While 61 per cent are disturbed by how little their savings are growing in the current low interest rate climate, and just over half are concerned over the income their pension will buy them.

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