More than half of Brits expect to work past state pension age because they haven't saved enough for retirement

Published by Stephen Little on 20 February 2019.
Last updated on 20 February 2019

‘Fifty-somethings’ face unemployment trap

Most British adults now expect to keep working past state retirement age because they do not have enough saved in their pension, with many expecting to turn to the 'gig economy' or temporary work, a new survey shows.

According to ING’s international survey on savings, 54% of Brits now expect they will need to keep earning in retirement.

Of these, 58% expect they will be working in the gig economy or temporary employment.

ING questioned nearly 15,000 people in Europe, the US and Australia, including over 1,000 Brits.

The study suggests that the notion of a traditional retirement is fast becoming a thing of the past.

It found that one in five (20%) people who have not reached retirement yet believe they will retire after the current state pension age of 65, while 13% think they will have to work for the rest of their lives.

The survey also found that 58% of Brits worry they will not have enough money in retirement, while 68% expect to have a worse standard of living when they retire.

Many people also choose to work past the retirement age because they are still happy to work and would like to stay in the workplace even though they may be able to afford to retire. 

The research comes just as the state pension age for men and women has been equalised to 65.

The state pension age for women was raised in November to 65 – the same as men – for the first time.

It has been steadily rising from 60 since 2011 and in 2020 the age for both sexes will rise to 66. The state pension age is then due to increase to 67 by 2028 and 68 by 2039.

Jessica Exton, behavioural scientist at ING, says: “These findings shine a light on the true extent of the problems many face in reaching long-term savings goals.

“Most people in the UK report that they track their day-to-day spending in some way, but many still agree they face financial challenges, such as expecting to need to earn in retirement. And this is not a problem confined to the UK.

“Long-term planning is difficult when many are also facing short-term savings challenges, a trend seen across all countries surveyed.”

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The problem occurs when you

The problem occurs when you have to retire before 65 due to ill health.
I've known two people who were forced to retire at 63.

You didn't mention that

You didn't mention that threats of means-testing State Pension entitlements surely discourages some people from building up their future retirement 'means'. With the cost of living going through the roof, particularly for rent or mortgage paying youngsters, why would they struggle to save for retirement if it could potentially reduce the State Pension they have been paying for all their working life?