A third not saving due to ‘financial reasons’, Zurich
New research suggests people are not saving enough to retire comfortably when they are 65 and a quarter of over-55s have not saved anything.
More than two thirds of working adults who think they will carry on working past the age of 65 will do so because they can’t afford to retire, new research from Zurich has revealed.
The number now intending to work beyond 65 because they will need the extra money has more than doubled in three years as a similar study by the global insurer in 2008 showed that 31 per cent of Britons were putting off retirement for financial reasons.
The new research – part of Zurich’s ‘Big Decisions’ study looking at decision-making habits in the UK - shows that 59 per cent of 1,992 adults believe that they will make the decision to work after 65, either in a full time or part time capacity.
Zurich’s research also shows that although 64 per cent of people have started saving towards their retirement, nearly a quarter of over-55s have not yet saved anything towards their old age (24 per cent).
Mark Peters, head of retail propositions for Zurich’s UK life business, said: “Worryingly, although nearly two thirds of people have started saving towards their retirement, they are not saving nearly enough to retire comfortably at 65.”
The data also found that of those adults who have no retirement savings, 21 per cent do not intend to save anything to fund their retirement, 37 per cent are unsure whether they will be able to save anything towards their old age and 42 per cent intend to start saving “at some point”.
Mr Peters said: “Given all the publicity about pensions - the state pension age increasing, the widely reported estimated £318bn pensions gap and the fact that there may not be a state pension in the future - it seems that people are still not recognising that they need to save to ensure a financially secure retirement.”