Pension savers willing to work longer

Pension savers willing to work longer

11 May 2010 / by Lois Avery

Pension savers would work past 65 to boost their retirement funds, according to new research from Prudential.

In their Class of 2010 retirement survey nearly three out of five people planning to retire this year said they would be willing to work on in order to guarantee a higher retirement income and a quarter would be happy to work for five years more.

Another seven per cent of these people would be willing to put in another 10 years before retiring but 21 per cent refuse to continue working past statutory retirement age even if that means they will struggle financially.

Prudential also found that only 18 per cent of those who are planning to retire this year believe they have saved enough to ensure a comfortable retirement.

Vince Smith-Hughes, head of retirement income at Prudential, said: “Working beyond the normal retirement age is already a reality for many people who either have insufficient savings or simply want a greater income when they do come to retire.

“But for a lot of people planning to retire in the very near future the state retirement age is sacred and their expectation has always been to retire at 65.  Once they reach that milestone, regardless of the amount of money they have, they simply do not want to work anymore.”

The research showed that working an extra five years from age 65 and paying £100 a month into a pension of £100,000 could boost a retirement savings by £53,000.  Paying in £200 a month over five years could yield an extra £62,000.

Prudential are now urging people to save as much as possible into a pension and other savings products

“I think what our research confirms is how important it is to consider retirement many years before you actually reach it, and make sure you get financial advice to help you plan for retirement.”

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