Partner Article

Recession delays retirement for third of workers

A third of people have been forced to delay their retirement after seeing the value of their pension fund reduced during the economic downturn, according to a new survey.

Around 35% of people aged over 55 who are still working said they had put off plans to retire while they waited for the value of their pension savings to recover, retirement income firm MGM Advantage said.

A further 23% of people in this age group expected to work on beyond the state pension age of 65, while 32% admitted they were not at all prepared for retirement.

But 48% of those questioned said the recession had not changed their retirement plans, while 13% said they were currently saving more to offset losses elsewhere.

One in 10 people also said they were planning to boost their retirement income by either releasing equity from their home or moving to a smaller property.

Craig Fazzini-Jones, director at MGM Advantage, said: “One of the most worrying consequences of the economic turmoil is the knock-on effect for those approaching retirement.

“Millions of people nearing the end of their working life have been forced to slog it out for a few more years to see if their pension pots will make any kind of recovery. For many it is not a choice, but a necessity.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .