Money News
New research from Scottish Widows reveals that 26% of those aged 55 plus say that as things currently stand they will retire later than the current state retirement age - currently 65 for a man and 60 for a woman. Of this age group, 34% - or 1.5 million - say they might retire later because they just don't have enough money in their pension pot to afford to stop working. At the same time 42% make the point that the state pension simply won't be enough to support the standard of living they would like in retirement.
Ominously, 41% agree that money is tight and they don't have much to spare, 23% are more worried about their financial security than their health and 26% say the only investment they have is the value of their house
This block to retirement for the 'baby boomer' age group would explain why they believe compulsion is necessary - more so than any other age group. Over half (53%) of all those aged 55 and over believe the nation should be forced to save.
Ian Naismith, head of pensions market development at Scottish Widows, says: "The current generation of over 55s is definitely divided into 'haves' and 'have-nots'. The 'haves' generally have good employer pensions, often based on their final salary, and can retire at or before state pension age with good incomes.
"The 'have nots' are discovering that they will have to work for longer than they might have expected just to make ends meet.
"The worry is that with the decline in employer pension provision the next generation may well be dominated by 'have-nots', who realise they might have to work until quite a late age but do not feel they can afford to put aside money now. Not only will they have to retire later but they are losing out on the significant tax relief benefits that pensions offer."
19 September 2007 © Moneyextra.com
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