Are You Prepared to Work Longer Than Anticipated to Ensure a Comfortable Retirement?




There has been quite a reshuffle when it comes to retirement age in the United Kingdom. It has gone as far as Chancellor Philip Hammond possibly using the November 22 Budget to refocus on the balance between young and old, getting the younger to pay for the older so that they can benefit.

The concern is that official data has suggested that the elderly are already working for longer than they anticipated to ensure their financial security before retiring. This is becoming a common trend and we are seeing our older generation working longer and longer in order to secure their financial security, bridging the gap between an inadequate pension pot and a longer retirement.

In fact the Department for Work and Pensions in the United Kingdom released statistics who show that the average retirement age has exceeded sixty five for men for the first time and women are closing in very quickly. There are more than one in ten men working over the age of seventy, while eight percent of women are also working past this age.

The increase in working age has gone along with the rise in state pension age, which is now sixty eight years of age for anyone born after 1977. The number of people who could afford to retire early has also dropped. It was relatively common for people to retire in their fifties back in the 1980's with well-financed pension schemes and a healthy stock market. In 1984 an average of fifty six percent of people over the age of fifty were working, that number has increased to seventy one percent this year.

What we also need to bear in mind is that people are living for longer, which means that their retirement time is considerably longer, so a pension that could pay for basic living thirty years ago, isn't enough in today's market. In fact, the chance is that more than fifty percent of people born after the millennium will live to a ripe age of one hundred and five.

Professional Advice

With the changes taking place in the pension industry of late throughout the United Kingdom, it's recommended that anyone planning for retirement seeks professional financial advice, ensuring that they have a back up plan, their own pension pot that they are paying into in addition to their state pension.


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