Work till you drop over-55s
29 November 2014
- Key Retirement study finds 28% will never be able to afford to retire
- Fear of running out of money in retirement is driving need to keep working
More than one in four over-55s do not expect to ever be able to afford to retire, with the fear of running out of money in retirement a major factor keeping them in work, research from leading over-55s financial provider Key Retirement shows.
Its nationwide study among over-55s who are still in jobs found 28% believe they will never be able to afford to fully give up work. Around one in 10 will continue working full-time while 19% will work part-time.
Even among the 62% who believe they will have enough money to retire there is uncertainty with 15% admitting they don't know when they will retire and nine per cent expecting to work past their official State Pension Age.
The major reason for continuing to work is fear of running out of money in retirement, the study found. Around three out of four (75%) of over-55s who are still in work are concerned about the risk of running out of money with 22% very concerned.
Key Retirement believes these financial worries highlight the desperate need for expert advice and guidance on retirement options ahead of the launch of pension flexibility in April 2015.
Dean Mirfin, group director at Key Retirement (www.keyadvice.co.uk), said: "It is striking to find so many over-55s do not believe they will ever be able to afford to retire and paints a worrying picture of the current state of retirement.
"Of course, many of those planning to work until they drop may be entirely happy about it - Government figures show a steady rise in over-65s who are working.
"But the other side of the coin is that millions are worried about having enough money to survive in retirement and that is a major factor in staying in work. Even those who plan to retire are not entirely certain when they can afford to."
The table below shows the breakdown across the country - over-55s in Wales are most likely to keep working while those in the North East have the most confidence in their retirement. Worries about running out of money are high across the whole country but worse in London and the East of England.
| REGION | CONCERNED ABOUT RUNNING OUT OF MONEY | PLANNING ON NOT RETIRING |
| East Anglia | 84% | 23% |
| East Midlands | 83% | 23% |
| London | 84% | 25% |
| North East | 77% | 14% |
| North West | 75% | 19% |
| Northern Ireland | 79% | 25% |
| Scotland | 77% | 21% |
| South East | 79% | 23% |
| South West | 76% | 26% |
| Wales | 77% | 28% |
| West Midlands | 76% | 22% |
| Yorks & Humberside | 73% | 17% |
| UK | 75% | 28% |
The study shows those who currently have debts are more likely to be concerned about running out of money in retirement - 83% say they are compared with 73% without debts.