Retire at 65? We just can’t afford it any more

More than two thirds of working adults who think they will carry on working past the age of 65 will do so because they can’t afford to retire, according to new research from Zurich.

And the number now intending to work beyond 65 because they will need the extra money has more doubled in three years – a similar study by the global insurer in 2008 showed that 31 per cent of Britons were putting off retirement for financial reasons.

The new research – part of Zurich’s ‘Big Decisions’ study looking at decision-making habits in the UK - shows that 59 per cent of working adults believe that they will make the decision to work after 65, either in a full time or part time capacity.

Of those who say that they will continue to work after 65:

More than two thirds say that they’ll need the extra money (69 per cent)

Nearly half want something interesting to do (49 per cent)

One in eight want to give something back to society (13 per cent)

Zurich’s research also shows that although 64 per cent of people have started saving towards their retirement, nearly a quarter of over-55s have not yet saved anything towards their old age (24 per cent).

“Worryingly, although nearly two thirds of people have started saving towards their retirement, they are not saving nearly enough to retire comfortably at 65,” said Mark Peters of Zurich’s.

In addition, of those adults aged over 18 who have no retirement savings:

21 per cent do not intend to save anything to fund their retirement

37 per cent are unsure whether they will be able to save anything towards their old age

42 per cent do intend to start saving at some point.

“Given all the publicity about pensions - the state pension age increasing, the widely reported estimated £318bn pensions gap and the fact that there may not be a state pension in the future - it seems that people are still not recognising that they need to save to ensure a financially secure retirement.” said Mr Peters.