One in five British people fears they will never be able to retire. Britons feel more disheartened at the prospect of their retirement (or lack of) than citizens from any other country in the world. A global survey by HSBC revealed that 19% of participants in the UK expect that they will never be able to afford to retire properly. How about that for some shocking statistics?
So, what factors could have you working far beyond 65?
Life Expectancy
The life expectancy of UK citizens is on the rise, meaning in order to save enough money to fund their life after retirement, people are being forced to work longer. By the time most people can afford to retire, they may be too old and plagued with illness to be able to enjoy their retirement to the fullest. This depressing prospect means that it’s likely to be all work and no play for the UK’s future pensioners.
Failure to Start Saving Early
A failure on the part of Brits to start saving for their pension as soon as they start working is another contributing factor. Combined with a longer life expectancy, not paying into a pension fund from an early age creates a shortfall later in life that must be made up for by working past the age of retirement. For some people, the mistakes they made as a young 20-something will come back to bite them way into their old age.
Aspiration to Defer Retirement
It’s becoming increasingly common for pensioners to actively want to defer their retirement. As an older generation associated with a culture of hard work and steely determination, for some people, retirement is not something they look forward to. Many pensioners actually retire and return back to work, starting their own business or filling in a few days a week at their old company. For some, retirement is a dull existence and the appeal of work draws them back in.
Compulsion to Support Children
With more and more people attending university and racking up tens of thousands of pounds in debt, parents are feeling the need to support their children with regard to their financial pressures. To ensure their kids clear their debts and have the best possible chance at getting ahead in life, some parents are choosing to work past the age of retirement in order to financially support their offspring.
Not Making the Most of Your Pension Fund
Not putting the effort into maximizing your pension fund could mean you’re forced to work well beyond the age of retirement. Not taking advantage of tax relief, not shopping around for the right annuity quote and not reviewing old pensions could mean you’re getting a raw deal, leaving you financially worse off when you come to retire. All it takes is a little bit of time and effort and you can ensure you’re getting the best deal out of your pension pot, sparing you from working years beyond your retirement age.
See Also:
- The Impact of Inflation on Retirement Planning
- 4 Simple Ways to Start Preparing for Retirement – Today
- Who Has the Best Retirement Income?
- Optimizing Your Pension Choices for Approaching Retirement
Resources:
Image courtesy of Ambro / FreeDigitalPhotos.net
