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Prudential Reveals More than a Third are Delaying Retirement

Prudential has revealed that more than a third of people are delaying their retirement and putting their dreams on hold.

More than a third (38 per cent) of people due to retire in 2011 are cancelling their plans and delaying retirement and working longer, and a significant proportion (22 per cent) of these are doing so because they can’t afford to stop working.

The findings, from Prudential’s Class of 2011 study, revealed that those delaying retirement this year for financial reasons, had, on average, hoped to stop working at age 62 but now expect to be 68 years old before they can finally take up their state pension. The study, now in its fifth year, questioned people who had planned to retire during 2011.

Two fifths (40 per cent) of those delaying retirement in 2011 due to the financial strain that it will create, believe that they will have to keep working until they are 70 years old, or older, in order to retire with a comfortable income.

Prudential’s study shows that of all those planning to retire in 2011, 22 per cent now say they can’t afford to – a figure that has increased since 2010 when it was 15 per cent. In addition, 16 per cent of those planning to retire in 2011 do not want to quit working.

Vince Smith-Hughes, head of business development at Prudential said: “The only realistic option for those who want to avoid having to delay their planned retirement is to start saving as much as they can as early as they can.

“However, as inflation reaches 5.5 per cent and disposable incomes are reduced, Prudential’s research shows that people are postponing retirement to either build up their pension pots further or simply to continue in a job that they enjoy. When economic factors are combined with changes in legislation, such as the abolition of the Default Retirement age and an increasing trend of choosing to continue at work, it is easy to understand why more people are postponing their retirement plans.

Via EPR Network
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Prudential Reveals Recession Delaying Retirement For Nearly 3 Million UK Adults

Prudential research* shows that nearly 3 million UK adults aged over 45** have delayed their plans to retire because of the recession or a personal financial emergency, or because they want to keep working to build a bigger pension pot.

Prudential’s survey shows 9% – more than 1.6 million people – have put their retirement plans on hold because of financial emergencies and the effects of the recession while 7% (nearly 1.3 million people) are giving up retirement plans in favour of working in an effort to boost pensions so they can retire at a later date.

More than 710,000 people – 24% who have delayed plans to retire – fear they will now never be able to afford to retire completely because the economic slowdown or their financial emergency has had such a devastating effect on their retirement savings, Prudential’s nationwide Class of 2010 study shows.

The recession has also forced 17% to delay retirement for at least five years, while a further 51% believe they will have to wait between 12 months and five years before they can stop working.

Prudential believes these figures should be considered a warning to people who are still in a position to save for their retirement and urges people to save as much as they can for their retirement and to put money aside to fall back on in the event of a financial emergency.

Martyn Bogira, Defined Contribution Solutions Director, said: “It is imperative for people to realise what’s at stake before they come to retire.

Via EPR Network
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Research conducted for Prudential reveals UK pensioners are failing to budget for life in retirement

According to new research conducted for Prudential, UK pensioners are failing to budget for life in retirement, with many spending considerably more in year one than in subsequent years, only to regret their splurge as the reality of living on a pension bites.

The study found more than one in four (29%) pensioners admit to spending more in their first year of retirement, on average splashing out £8,000 more than in subsequent years.

The research also found that 19% of those who had spent more in the first year of their retirement regretted doing so and only around a third (32%) of retired UK adults said they set a retirement budget. More than a third (34%) said they just played it by ear and a mere 17% saw a financial adviser for advice on living
on their pension savings.

Despite this, the study conducted among retired UK adults, found that 63% said they felt they had planned their finances adequately before retiring.

Gary Shaughnessy, Prudential Managing Director Retail Life & Pensions, said: “It is quite worrying to see the lack of planning people undertake as they approach retirement and it’s particularly surprising to see how few of today’s pensioners sought financial advice. Seeing a financial adviser should be a baseline activity for everyone planning their retirement so that they structure their finances to maximise retirement income from all available sources, including pensions, savings and investments and equity in their homes, if necessary.”

About Prudential:
Established in 1848, today Prudential plc is an international financial services company with a product range which extends from personal banking, insurance, pensions and retail investments, to institutional fund management and property investments.

In the UK Prudential is a leading life and pensions provider with around seven million customers.

Via EPR Network
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