PensionsMay 22 2013

‘Baby boomers unrepared for retirement’

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ByIona Bain

A 56-page report, the Aegon Retirement Readiness Survey 2013, followed a survey of 12,000 people in 12 countries that found a majority had not made enough provision for their retirement.

The survey was conducted alongside the Transamerican Center for Retirement Studies and Cicero Consulting, and 90 per cent of respondents were currently working and 10 per cent were retired

It found that only 9 per cent had a written plan for retirement, and most people’s expectations of a good lifestyle was unlikely to be met by their current patterns of saving.

The data highlighted pensions pessimism among employees in Europe, the US and Asia, and only 12 per cent said they had have enough money to survive on once they retired. Globally 63 per cent expected to see governments cut back their retirement benefits.

A similar number, 62 per cent, said they would work longer to avoid an impoverished old age, and of the respondents that had already retired, only 7 per cent said it was because their savings were sufficient. The report revealed that 42 per cent blamed health issues for early retirement and 23 per cent stopped working because they had lost their jobs.

Angela Seymour-Jackson, managing director of workplace solutions for Aegon UK, said: “Across the world thousands of baby boomers are turning 65 every day.

“Many of them are not financially ready for retirement and are seeking to extend their working careers by continuing to work full-time or part-time.

“Governments and employers can help employees achieve retirement readiness while retaining valuable talent by offering transition options for older workers nearing retirement.”

Adviser View

James Norton, director of London-based Evolve Financial Planning, said: “What individuals need to do is look at income and expenditure. Most people have a clear idea of income but many people don’t have a clue and they’re spending money on things they don’t need. Perhaps if they cut back on discretionary spending, earlier retirement may be possible.”