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More retirement dreams fade

BBC News, September 12, 2002

Cruises may have to wait

Long held dreams of early retirement are fading fast, according to a new survey.

A rising number of people believe they won't be able to afford to retire before the age of 60 at the earliest.

As many as 13% of workers now expect to continue working beyond the usual state retirement age of 65, compared with just 5% a year ago.

Turbulent stock markets, final salary pension scheme closures and poor annuity rates are already affecting retirement expectations, said Virgin Money, which commissioned the survey.

Lower pensions

On a more upbeat note, the research found that 49% of those surveyed believed their current retirement provision would leave them with enough to live on.

However, 46% said they would not have enough.

Of these, 46% said they planned to top up their pension with other savings.

While 36% said they would have to work longer - and 30% said they would just have to accept a lower income in retirement.

Perceptions have changed dramatically over the last few years.

Living longer

In 2000, when a similar survey was conducted, only 9% believed they would be working beyond the age of 66 - that proportion has now risen to 13%.

Only 18% now believe they will retire between 55 and 59, compared to 23% one year ago.

Virgin Money Director Gordon Maw, said: "These are staggering figures which show that early retirement is becoming a pipedream for millions.

"People are living longer, but news of falling stock markets, lower annuity rates, and the closure of final salary pension schemes is already affecting people's perceptions of their own retirement."

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