Nearly half of the UK’s over 50s could be forced to work for more than a decade beyond state pension age to keep their standard of living, according to a new report.
Research by the Pensions Policy Institute (PPI) suggests that 45 per cent of people aged 50-plus would need to work for an extra 11 years – taking them well into their 70s – to secure a comfortable retirement.
A further five per cent of over 50s will have to work for at least six years to maintain their living standard, defined by the PPI as 50 to 80 per cent of gross working life income.
Joanne Segars, chief executive of the National Association of Pension Funds (NAPF), said: “Many people in their 50s will be stunned by the prospect of working for another decade after they start getting their state pension.
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“Those who are prepared to live on less in their retirement may still find they don’t have enough savings, so will have to work longer.”
The findings come in the wake of the latest unemployment statistics from the Office for National Statistics (ONS) which show that there are now 118,000 people aged 50-plus in the UK who have been unemployed for two years or more – a 45 per cent leap from this time last year.
Michelle Mitchell, charity director general of Age UK, said: “Lower annuity returns and other factors mean that more and more people will have to work past their state pension age – and often for many years – if they are to have enough money to live comfortably.
“The Government must work to encourage employers to hire and retain older workers, and to provide training for those who need it if we are to avoid creating future generations of people in later life struggling to make ends meet.”
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