PENSION CRISIS FOR THOSE HOPING TO RETIRE EARLY

PENSION EXPERTS WARN THAT ALMOST NO-ONE WILL BE ABLE TO RETIRE AT THE AGE OF 65

The number of people retiring before the age of 65 has fallen by a quarter in just seven years, according to major insurer Aviva.

The latest report from the ONS (Office of National Statistics) has revealed the number of people aged under 65 in retirement fell from nearly 1.6 million in 2011 to less than 1.2 million at the start of 2018.

The number of people aged over 65 still in employment soared by 38,000 from August 2017 to October 2017.

It also showed that a record 10.1 million people are still in employment whilst a decade ago there were fewer than 700,000 over the age of 65 still in work.

Pensions experts attribute the falling number of people in retirement to better health care and higher life expectancy, the demise of final salary pensions and the rising state pension age.

THE NUMBER OF PEOPLE RETIRING BEFORE THE AGE OF 65 HAS FALLEN BY A QUARTER IN THE PAST SEVEN YEARS

Alistair McQueen, head of savings and retirement at Aviva, said that by 2035 there may be almost nobody retiring before the age of 65. This means that anyone born after 1970 will almost certainly have to work well into later life.

Mr. McQueen added: “This has followed years of continued increases since records began in 1993.”

“As life expectancy at birth increases and the state pension age rises, we can expect this trend to continue.”

The current state pension age is 65 for men born before December 6, 1953, and between 60 and 65 for women born between April 6, 1950, and December 5, 1953.

From 2019, this will increase to 66 for both men and women by 2020. This figure is expected to increase to 67 by 2028.

Government statisticians believe this will rise as high as age 70 in the 2050s and age 71 in the 2060s.

According to the latest report from the House of Commons, the change in the state pension age will leave 7.6 million people worse off by £10,000 per annum.

Financial adviser, Hugh Norris, had this to say:

“I don’t think that people have come to terms with what these retirement age increases really mean to them.”

“These increases may not affect those who have been contributing to their private pension schemes from an early age, but those are in the minority, and the situation is getting worse.”

“Austerity has meant that over the past ten years people have been contributing less to their private pensions than before – that’s even if they can contribute anything at all.”

A significant new study by the Home Office has discovered that the number of employees expecting to have to work past the age of 70 has nearly doubled in the past seven years.

The Independent has revealed that almost a third now expect to be employed after turning 70 years old, up from 17% in 2010.

It also showed that 44% of employees under the age of 30 who will probably retire in the 2040s are still expecting to be working well into their 70s, compared with just 20% of those over 50 and 29% of those in their 40s.

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