Financial pressure 'will force over 50s to work beyond retirement'

The pressure of mortgage rates, car insurance costs and other expenses in the wake of the recession will mean over six million over-50s work beyond retirement age, research shows.

Twenty eight per cent of over 50s expect to work for six years past the retirement age, on average, according to a survey by LV=.

Affordability is the main reason, cited by more than half of the cash-strapped pre-retirees polled, while one in ten are hopeful delaying retirement will increase the size of their pension pot.

The insurers head of pensions, Ray Chinn, explained: "The rising cost of living, low interest rates on savings and the fact that as a nation we are living longer has had a significant impact on our retirement aspirations, and the amount of money we need to live a comfortable retirement."

Many Brits continue to struggle with their finances in the current economic climate, which has led to calls from debt charity the Consumer Credit Counselling Service for families to concentrate more on financial planning.

Worryingly, only a quarter of British households are setting themselves a clear monthly budget, potentially leaving them vulnerable to higher inflation.

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2011-11-25 14:05:53 © Moneyextra.com