When will you be able to retire?
It’s a killer. Queen frontman Freddie Mercury would have been 65 today if he was still alive* and eligible to draw his State Pension along with the rest of the nation’s more mature individuals. Still, who wants to live forever? However, despite 65 being the traditional age of retirement, new research shows that over a third (36%) of UK adults don’t know when they will be able to retire.
The survey, by Baring Asset Management, whose pensioners can presumably retire at 40 and live gleefully ever after, better change your pension provider quick**, also showed that 10% of people planned to never stop working. Presumably then, they are planning to keep working until they drop dead on the job. Another one bites the dust.
The survey interviewed 1,589 non-retired UK adults in order to get this newsFlash, which also found that men plan to retire later than women with 13% intending to retire between 66-70 compared with just 9% of women. However, this number has more than doubled since 2010, when just 4% of women planned to retire at 66-70. Perhaps the fact that the State Pension age for women is rising to 65 and through to 67 (or beyond) has made the fat-bottomed girls realise that they may have to work longer than they had originally planned.
Marino Valensise, Chief Investment Officer at Barings, said, insightfully, “it is apparent that the outlook for those planning their retirement is very uncertain for many people. We have seen the cost of living continue to rise, making retirement more expensive and resulting in many more people having to put retirement off for a few more years. With increased longevity and people not saving enough, the working population of those aged 65 and over will inevitably continue to increase.”
Of course, the implication is that these people have not saved enough money to be able to retire when they would actually like to, and with the virtual demise of the final salary scheme, today’s youngsters (counted as anyone under 30. Or maybe 35) may have to work even longer than even they think. A lack of disposable income, coupled with poor investment returns is just compounding the problem.
Still, at least we can rely on the Government to look after us in our really old age when we really are past it. Heaven for everyone, right?
* he’s not. This should not be news to you.
** this is not financial advice. This is sarcasm.