Over half of workers over 50 have revised their pension planning, and now believe they may never stop working, according to a new survey from HSBC Bank.
Government’s announcement this week that the retirement age of 65 is to be scrapped in October 2011 has given workers the freedom to plan to work beyond 65, for the first time. With no default retirement age, employers have lost the right to require an employee to retire, simply by giving them 6 months’ notice before they reach their 65th birthday.
HSBC questioned over 2,000 UK adults over 50 and found that most would intend working beyond 65, not as a lifestyle choice, but simply through the anticipated need to earn extra cash in retirement.
Recent information in a separate survey from Prudential showed that over half (59%) of UK adults have realised they have not saved enough for their retirement, and believe they will outlive their pension savings.
The Office for National Statistics (ONS) calculated that currently 1.45m people over 65 are still in full-time employment, which means that 12 per cent of ‘retired’ people are actually still in a full-time job. The figure has risen by 84,000 in the past year.
HSBC also believes, however, that many are considering a longer working life as an opportunity to seek out new challenges. David Wells, HSBC’s head of pensions, believes that those now rethinking their pension planning in order to work longer are seeking ways to embrace new skills and challenges that may now only become possible after careful financial planning during their earlier working life.
Making a detailed pension plan to secure a pension income from company or private pensions is best done with quality pension advice, Wells added, and in future is as likely to factor in a working old age, rather than a traditional leisure-based retirement.
