28 October 2011
Current economic climate could force retirement rethink

Over three quarters of a million 45-65 year olds say they don't think they will ever retire

• One in five (21%)¹ of 45-65 year olds who have financial plans in place to provide for their long term future no longer feel their plans will support them due to the current economic climate
• 6% of 45-65s who aren't retired don't think they will ever retire, or 787,451 people² currently in the UK
• Whilst 16% of 45-65s who have financial plans in place to provide for their long term future feel confident, a further 48% of 45-65s now only feel reasonably confident their financial plans will support their long-term future
• Nearly three quarters (72%) of 45-65s who aren't retired plan to retire between the ages of 61 and 70 years old
  

New insight published today by Standard Life, the savings and investment specialist, suggests that the UK could be heading towards a perfect retirement storm; one in five (21%) of 45-65 year olds who have financial plans in place to provide for their long term future no longer feeling their financial plans will support them into the future. 6% in this age group who aren't already retired don't think they will ever be able to retire, equating to over three quarters of a million people.

Of those who have financial plans in place to provide for their long term future, 64% of 45-65s feel confident that their financial plans will support their future post retirement. 21% of these adults no longer feel their plans will support them into the future, with a further 10% having never felt confident. 37% of 45-65s have no financial plans in place for their long-term future. And yet 72% of people currently aged between 45 and 65 who aren't retired think they will retire between 61 and 70 years old.

John Lawson, Head of Pensions Policy at Standard Life said: "The current financial crisis has brought into sharp focus the need to make and review appropriate plans. This will clearly be challenging but there are many things you can do to make your retirement years as secure as possible."

As part of the Changing Face of Retirement research, Standard life has published a list of top tips to help people re-engage with their financial planning.

1. Don't panic!
2. Seek professional financial advice
3. Continually review your financial goals
4. If you don't have one, make a plan. For tips, please visit www.yourfuturemoney.co.uk
5. Ask for a state pension forecast (and calculate your state pension retirement age)
6. Review your investments
7. Consider deferring taking the state pension at your default retirement age – for every year you defer taking benefits you can increase the pension by 10.4%³
8. If you have moved jobs, ensure you have kept your old employer up to date with address changes so you can claim any workplace pension when you retire.
9. If you can, increase your savings
10. If you're a higher rate tax payer, ensure you claim the tax-relief. Standard Life estimates 300,000 people are not claiming this currently (Tax relief may be altered and its value depends on individual circumstances)
    

To find an independent financial adviser, please visit unbiased.co.uk.

Ends

 

For further information, please contact:

Paul Keeble
Direct: 020 7872 4481
Mobile: 0771 248 6387
Email: paul_a_keeble@standardlife.com

Matthew Pittam
Direct: 0131 245 4961
Mobile: 07515 298 642
Email: matthew_pittam@standardlife.com

Notes to Editors

1. Source: YouGov Plc. Total sample size was 2174, of which 982 adults in the UK were aged 45 - 65. Fieldwork was undertaken between 31st August and 2nd September 2011. The survey was carried out online. The total figures have been weighted and are representative of all UK adults (18+).
2. Source: According to ONS data, as at mid 2010 there were 16,539,200 people in the UK aged between 45 and 65 years if age, of which 76.3% were not retired, or 12,619,409, 6% of that population = 787,451.
3. Source: Directgov
4. Established in 1825, Standard Life is a leading long term savings and investment company, with around six million customers internationally. By understanding customer needs and offering innovative products to meet these needs, Standard Life helps people with their financial planning, so they can feel more confident about the future.
5. Standard Life is headquartered in Edinburgh and employs around 9,000 people across the UK, Canada, Ireland, Germany, Austria, India, USA, Hong Kong and mainland China. At the end of June 2011 the Group had total assets under administration of £200bn.

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