Reality hits as 6 million over 50s delay retirement plans

More than 6 million of the UK’s over 50s are planning to delay their retirement according to a new report from LV=.

Increasing life expectancy and insufficient pension funds mean that retirement will be delayed by an average of six years, while one in five expect to work for at least a decade past the current state retirement age.

Affordability is the main reason for delay, as the cost of living continues to rise, while 11 per cent are delaying in the hope that their pension pot will increase in value.

Commenting, Ray Chinn, head of pensions at LV= said: “The trend of people retiring well into their 60s, or even their 70s, has been increasing slowly over the last few years. The rising cost of living, low interest rates on savings and the fact that as a nation we are living longer has had a significant impact on our retirement aspirations, and the amount of money we need to live a comfortable retirement. Our findings have shown that a significant number of over-50s expect to work many years past the state retirement age, and we’re likely to see this increase further.”

The Working Late Index report also found that one in five over 50s had retired but has since gone back to work. Nevertheless, some have taken the opportunity to fulfil other ambitions, as a fifth has changed their career, while 12 per cent have started their own businesses.