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.
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.’
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