'Over 50s need to save more to avoid having to work after retirement'
The majority of people will have to work past their retirement age to enjoy an adequate pension income, according to a report by the Pensions Policy Institute.
The research, sponsored by a consortium of Age UK, the Actuarial Profession, Aviva and Partnership, found around 40% of over 50s who are still working might have enough retirement income to maintain the same standard of living as they have now if they continue to work and save until they are eligible to retire.
Ten per cent might need to work a further one to five years after retirement to maintain their living standards; five per cent would have to work and save for six to ten years past retirement and 45 per cent would have to work for 11 years past retirement to have a similar standard of living to what they enjoy now.
The Institute said around 85% might have enough state and private pension provision to meet a minimum acceptable standard of living in retirement of £11,000 a year if they keep on working and saving up to retirement.
Niki Cleal, PPI Director, said: “In the last three decades, life expectancy has increased dramatically in the UK. On the whole this is good news for individuals, but it also means that many people will need to save more and work longer if they want to have an adequate retirement income.” “Many people need to start saving more today, if they want to avoid having to work much longer than they planned and want to have an adequate retirement income in the future.”