Retirement is too expensive for a fifth of employees
One in five people don't expect to be able to retire. So says a new survey from Now Pensions warning about the failure of many employees to make adequate provision for their later years.
With the abolition of the Default Retirement Age (DRA), there are now more opportunities for workers to keep on working if they are able to. But failure to plan ahead may take the choice away from them. Shortfalls in savings may force many to work part-time or forego the option of retirement altogether.
The introduction of auto-enrolment pensions is predicted to improve retirement income for large numbers of employees, many of whom would not otherwise have made savings. The Department for Work and Pensions recently estimated that the scheme could almost double private pension income for employees who start saving now.
This should make a difference for employees in the early stages of their careers, but what about the others? The survey revealed that more than a quarter thought their pension savings wouldn't be enough when they retired and more than a third weren't currently making any savings at all.
The average age of people planning to retire this year is 60. But with life expectancy increasing, the prospect of thirty or more years in retirement may be unattractive or unaffordable. By 2030, the UK will be home to 15 million people over the age of 65. With people living and working longer - last year an estimated 1.1 million 'pensioners' were still at work - it's vital they get sound financial advice to have better control over their retirement.
Acas provides advice and guidance on Retirement issues and has produced Age and the workplace: a guide for employers and employees [336kb] and employees. Acas also offers practical training on topics surrounding Age and the repeal of the Default Retirement Age.
Visit the Acas Training and Business Solutions area for more information.