Over a quarter of over-55s believe they will still be working in their 70s, with the majority lacking a financial plan for retirement, new research by My Pension Expert has revealed.
The UK’s leading at-retirement adviser commissioned an independent survey of 2,000 UK adults. It found that the cost-of-living crisis has significantly impacted retirement plans, with 44% of over-55s in work believing it has made retirement impossible.
Over a third (37%) say the current economic climate has derailed their financial plans. Over a quarter (26%) think they will still be working in their 70s.
My Pension Expert’s research showed that, while Chancellor Jeremy Hunt is urging over-55s to either remain in work or re-enter the workforce, for millions, they do not feel they have a choice either way. Just 35% of over-55s think they will be able to retire when they want to.
The survey also revealed that many over-55s are not sufficiently prepared for stopping work. Less than half (43%) know how much they have saved in their pensions, and even fewer (37%) have a financial plan in place for retirement.
Further, while 32% of over-55s have spoken to an independent financial advisor (IFA) before, only 17% currently use the services of a financial adviser. Most (55%) think financial advice is too expensive.
Andrew Megson, CEO of My Pension Expert, said: “Chancellor Jeremy Hunt has been making it abundantly clear that he wants to keep over-55s “economically active”. “Britain needs you”, he said, despite the fact that older workers have been poorly treated and under-acknowledged for many years. No, it won’t be a sense of duty that keep them in employment, but necessity, as our research proves.
“The cost-of-living crisis is squeezing people’s finances and derailing their long-term plans. Many believe decisions around retirement are now out of their hands. Worryingly, though, not nearly enough is being done to boost pension engagement or access to independent advice, both of which would give Britons the tools to effectively plan for a secure, stable, financially viable retirement.
“No one should feel pressured to delay retirement, nor return to employment after decades of hard work and diligent saving. The government ought to be working with the financial advice sector to ensure more people can access advice to make informed decisions and achieve their financial goals – knowledge is power, and our research shows that .”