23rd November 2015
Nearly 10% of Britons or the equivalent of 3.1m people – say they do not plan to retire, according to a new survey from Baring Asset Management.
This compares to 14% of people last year and is the lowest figure since the survey in 2010.
More than third, at 37%, of respondents said they do not know when they will retire, up from 34% in 2014.
In addition, the survey found that the average age people expect to retire is 62, and that 34% aged 65 and over said they do not plan to retire, up from 32% in 2014.
Almost a third, at 31% said they have no formal pension versus 33% in 2014 – this has been falling over the years, and compares to 38% in 2011.
However, over half, at 53%, of 18-24 year olds say they do not have a pension at all, while there is a sharp difference between men and women – 23% compared to 38%, respectively, who admit to not having any form of formal pension.
|Baring Asset Management – Annual Retirement Survey|
|Average age respondents plan to retire||62||63||64||63||63||62|
|Percentage of people who don’t know when they will retire||37%||34%||40%||38%||36%||42%|
|Percentage of respondents that don’t plan to retire||9%||14%||14%||12%||10%||10%|
|Percentage of respondents that don’t have a formal pension||31%||33%||34%||36%||38%||38%|
|Source: Baring Asset Management 1-6|
Rod Aldridge, head of EMEA wholesale distribution at Baring Asset Management, said: “It is clear that large numbers of people still do not have effective pensions in place though it is good to see this number falling year-on-year. It is also interesting to note that many expect to retire relatively early when compared to the state pension age.
“The pressures on people to save for the future and plan properly are growing not shrinking, particularly in light of the recent changes to pensions and annuities implemented in April this year, and it remains fundamentally important for everyone to get a better understanding of the benefits of planning ahead and thinking about how they will fund their retirement.”