Millions of People to Delay Retirement

By Lucy Warwick Ching, The Financial Times

March 4, 2009

United Kingdom

More than two million people are delaying retirement this year because of the global downturn and a fall in value of their investments. 

A report from Prudential, the Prudential Class of 2009 retirement survey, revealed on Wednesday that 2.2 million UK adults planned to delay their plans until 2012 or beyond citing concerns that they would not be able to get their pension plans back on track for several years. 

The report also said only 25 per cent of those delaying drawing their pension in 2009 expect they will be able to retire before 2012, with an even higher number - 42 per cent - expecting it will be 2012 or beyond before they can stop working, and 23 per cent believe they will never be able to afford to retire.

The research also found that one in four people fear that they may never be able to afford to retire.

Nearly one in three of those actually able to retire in 2009 are public sector workers, even though they make up just one in five people in the UK workforce. 

The remaining 2009 retirees will be split 35 per cent from private sector jobs and 15 per cent from self employed roles, with the remainder coming from those who are unemployed or in other sectors, according to the Prudential ‘Class of 2009’ retirement survey.

Martyn Bogira, director of DC pension solutions at Prudential, said: ”It is a reflection of the difficult economic situation that so many workers, and particularly those in private sector roles who do not benefit from public sector final salary pension schemes, are trying to delay retirement but there are other options available.

”Now more than ever it pays to seek early retirement advice from an independent financial adviser and we would suggest that people start planning for their retirement early, ideally at least 15 years from retirement.”

He added: ”It is vital that those saving for retirement continually monitor their investment mix to ensure they have the right risk profile to help minimize the impact of economic fluctuations and falling stock markets.”

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