1m over-65s to continue workingNearly half at retirement age will work beyond 70

24 August 2010

Planning your retirement

National Insurance contributions build up your entitlement to a state pension

Following the government's proposal that the default retirement age be abandoned, new research has revealed that the number of people aged 65 or over and still in work will rocket. 

According to a survey by Heartwood Wealth Management, 44% of people aged 65 or over and still in work plan to stay in employment until they are at least 70. 21% of those people questioned said they would never retire at all. 

According to Heartwood, 29% of workers of pensionable age anticipate delaying full retirement for longer than they had originally planned. The reasons cited for this included a fall in pension values, affecting 32% of respondents to the survey, and the increasing cost of living, which concerned 27%. 

A further 24% of people said the need to continue supporting their children financially was a reason to remain in work for longer. Meanwhile, 8% of consumers questioned by Heartwood said they were worried about the cost of any medical treatment they might need in the future. 

Retirement planning

Simon Lough, chief executive of Heartwood, said: 'While the government has chosen to position ending the default retirement age as a victory for older people against age discrimination, the sad truth for many is that they're not working through choice but because they can't afford to stop. 

'While the current crop of working 70-year-olds is still in the minority, this trend will rapidly spread through younger generations. The only way to avoid being forced to continue working is to start saving earlier and treat retirement planning as a 40-year engagement.' 

pound coins

Which? Money when you need it

You can follow @WhichMoney on Twitter to keep up-to-date with our Best Rates and Recommended Provider product and service reviews.

Sign up for the latest money news, best rates and recommended providers in your newsletter every Friday.

Or for money-saving tips, and news of how what's going on in the world of finance affects you, join Melanie Dowding and James Daley for the Which? Money weekly money podcast

For daily consumer news, subscribe to the Which? news RSS feed here. And to find out how we work for you on money issues, visit our personal finance campaigns pages.