'One in Three' Delaying Plans for Retirement; [Bar] Many Older Workers Say They Can't Afford to Retire
MORE than a third of people who hoped to retire this year are putting their plans on hold as many find they cannot afford to stop working, research indicates.
Around 38% of people who had planned to start drawing their pension during 2011 have decided to delay retiring, with 22% admitting they cannot afford to give up their job, according to insurer Prudential. Among those who are delaying retiring for financial reasons, 40% think they will have to keep working until they are 70 or older to have a comfortable income during retirement.
On average, those who claim they cannot afford to retire as planned had hoped to stop work when they were 62, but they now think they will be 68 before they give it up.
The proportion of people who think they can no longer afford to retire as they had planned has increased significantly during the past 12 months, rising to 22% now from 15% in 2010.
Vince Smith-Hughes, head of business development at Prudential, said: "The only realistic option for those who want to avoid having to delay their planned retirement is to start saving as much as they can as early as they can.
"However, as inflation reaches 5.5% and disposable incomes are reduced, Prudential's research shows that people are postponing retirement to either build up their pension pots further or simply to continue in a job that they enjoy. …