Millions Have No Idea When They Can Afford To Retire

Millions Have No Idea When They Can Afford To Retire

Millions of workers have no idea when they could afford to retire, according to a new study.

More than 5 million have no plans for retirement, while millions more have no idea when to set a date on giving up work, says the report from Barings Asset Management.

The number of workers with no plans for retirement has increased by since 2011, which suggests retirement savers are struggling to stash enough cash for their later years.

Now 40% of workers – about 14 million people – are uncertain about their futures, up from 36% in 2011 and 38% in 2012.

Just over a third of over 55s approaching retirement do not know when they can afford to retire.

No pensions

The study revealed that they are planning an average retirement age of 64, while workers over 65 do not feel they can afford to retire until they are aged 71 years old.

Barings spokesman Marino Valensise said: “Many workers are uncertain about putting a date on when they can give up work and the average expected retirement age appears to keep on rising.

“The worry is those approaching retirement have shown a lack of financial planning and have not saved enough. Combine this with people living longer and many do not have the resources to retire when they want or to finance their later years comfortably.”

Barings also found that a third of workers have no pension – a figure that has floated around that mark since the survey started in 2008.

Gender gap

Breaking down the figures, managers and executives are more likely to have a pension (82%), compared with low-skilled workers (39%).

The number of workers approaching retirement without a pension has risen significantly as well.

This year, 31% confessed they had no pension savings – up from 22% in 2008.

By gender, the number of men without a pension has dropped from 30% in 2008 to 26% this year, while women report the reverse with a rise from 39% with no pension in 2008 to 42% in 2013.

Workers who do not know when they will retire

Age

2013

2012

2011

18 – 24

54%

42%

46%

25 – 34

39%

32%

36%

35 – 44

39%

38%

38%

45 – 54

40%

38%

32%

55 – 64

34%

44%

30%

65 plus

18%

15%

15%

Total

40%

38%

36%

Source: Baring Asset Management 2013

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Millions Have No Idea When They Can Afford To Retire

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