Two million Brits doubt they will ever be able to afford to retire
With the UK State Pension age having risen to 66 the week, new research by the personal finance experts at money.co.uk, reveals that over two million working Brits don’t think they will ever be able to afford to retire.
The poll of workers from across the UK, sadly also unearthed that a further 3.5 million workers felt they would be working until they were at least 71, long after they hit 2020’s retirement age of 66 and still further beyond the new 2026 retirement age of 67.
In addition, 80 per cent said they were not banking on claiming a state pension and had taken out personal pensions to be able to afford to live once they eventually stopped working.
The state pension age is rising to 66 today, meaning hundreds of thousands of Brits will have to wait longer to start claiming.
And the money.co.uk research shows that one in four workers have also changed their pension plans due to Covid, as they either look to increase payments to try and save for the future or reduce their monthly inputs due to economic hardships.
Salman Haqqi, personal finance expert at money.co.uk, says: “The thought of having to work everyday for the rest of your life is a pretty bleak one, but it is the reality facing many workers across the country as the financial aftermath of coronavirus undoubtably impacts our future retirement plans.
“Despite millions being eligible for a state pension, and despite paying for it through National insurance contributions, the majority of us are not relying on it.
“Our data also revealed that 40 per cent of people didn’t understand how to go about obtaining their pension, even though they had one. Planning ahead, understanding your pension options and saving as much as you can afford to budget for, really is the only way to ensure you future proof your finances.”
The increase to the state pension age - which goes up from 65 to 66 - applies to both men and women born after October 5, 1954. It means anyone born after this date will have to work at least another year before they can access their state-paid retirement fund.
Savvy workers in the Financial Sector are the most likely (25 per cent) to have increased their pension contributions during COVID-19, whereas those struggling in arts and culture roles are the most likely (32 per cent) to have decreased the amount they are saving each month.
Regionally workers in Brighton are most concerned that they will not 1-in-5 of workers in Brighton will be working above the age of 71 and a further 1 in 10 don’t think they will ever be able to afford to stop working.