More than one in four over-55s (26%) believe they will still be working past 70 due to the cost of living crisis, according to a new survey.
Some 44% of those surveed say the cost-of-living crisis has made retirement “impossible.”
Despite this just 37% have a financial plan for retirement and only 43% know how much is in their pension, the study for at retirement adviser My Pension Expert found.
In terms of financial advice, 32% of over-55s said they had spoken to an independent financial adviser (IFA) but only 17% currently use the services of a financial adviser. Most (55%) think financial advice is too expensive
My Pension Expert commissioned an independent survey of 2,000 UK adults and found that that the cost-of-living crisis has hit retirement plans for millions.
More than a third (37%) say the current economic climate has derailed their financial plans. Over a quarter (26%) think they will still be working in their 70s.
Just 35% of over-55s think they will be able to retire when they want to.
The survey also found that many over-55s were not sufficiently prepared for stopping work. Less than half (43%) know how much they have saved in their pensions and only 37% have a retirement plan.
Andrew Megson, CEO of My Pension Expert, said: “Chancellor Jeremy Hunt has been making it abundantly clear that he wants to keep over-55s “economically active”. “Britain needs you”, he said, despite the fact that older workers have been poorly treated and under-acknowledged for many years. No, it won’t be a sense of duty that keep them in employment, but necessity, as our research proves.
“The cost-of-living crisis is squeezing people’s finances and derailing their long-term plans. Many believe decisions around retirement are now out of their hands. Worryingly, though, not nearly enough is being done to boost pension engagement or access to independent advice, both of which would give Britons the tools to effectively plan for a secure, stable, financially viable retirement.
“No one should feel pressured to delay retirement, nor return to employment after decades of hard work and diligent saving. The government ought to be working with the financial advice sector to ensure more people can access advice to make informed decisions and achieve their financial goals – knowledge is power, and our research shows that.”
• Research was carried out between 20 and 25 January 2023 among 2,000 UK adults via an online survey by Opinium.
