Millions ditch retirement plans: A third of workers aged 55 or older say current economic climate has derailed their finances
More than one in three workers aged 55 or older say the current economic climate has derailed their finances and millions are ditching their retirement plans as a result, according to a new survey.
Double-digit inflation, soaring energy costs and turbulent stock markets hitting the value of pensions are among the factors affecting decisions to defer retirement. Around a quarter of people say they will still be working in their 70s.
Only a third of the 2,000 asked had a financial plan to guide them towards an affordable retirement while half had no idea how much they would survive on in old age, the survey by financial adviser My Pension Expert reveals. But just over a third said they were confident they would be able to retire when they want to.
Food for thought: Fewer than one in ten people use an independent financial adviser for guidance on retirement planning
Chief executive Andrew Megson says: ‘Sadly, it does not appear a sense of duty will keep the over-50s in employment as the Government has been hoping – but that they will be working out of sheer necessity.
‘No one should feel pressured into delaying retirement plans after decades of hard work.’
Last month, the City watchdog the Financial Conduct Authority said it would review the way that pension advice is provided to everyone.
Fewer than one in ten people use an independent financial adviser for guidance on retirement planning. Many are put off by the cost of help, which can equate to at least 1 per cent of a pension pot. All over-50s are also entitled to a free one-hour appointment with Pension Wise to discuss their retirement options.
The Government-backed scheme does not provide full financial advice, but does offer impartial guidance on taking money from pension pots.