subject: Millions Can't Afford To Retire [print this page] Millions Can't Afford To Retire Millions Can't Afford To Retire
Many people of pensionable age are finding it impossible to cover all their bills each month on current wages, let alone a reduced pension. Many over-50s are still paying off a mortgage and various other debts. It is essential that people are aware of debt management plans nowadays but especially for over-50s trying to plan for the future and get out of debt, it is important to be aware of the various debt management plan options in order to choose the most suitable solution for their money management needs.
Crippling charges on credit cards and personal loans exacerbate the situation and leave older citizens with no choice but to continue working in order to meet repayments.
A massive 4.5 million people over 50 years old expect to work beyond their state retirement age according to new research conducted by insurance and retirement firm LV.
The study found that more than half of over-50s expect to work up to 5 years beyond retirement, more than expect to work 5-10 years past retirement and 20% believe they will be working past the age of 80.
Furthermore, the survey revealed that almost twice as many women (66%) than men (34%) expect to be working well past retirement age.
Recently, the new Coalition Government announced that the state retirement age is set to rise from 60 for women and 65 for men, to age 66 for both genders by 2020.
LV found that 66% (almost 2.5 million) of late retirees will continue to work because they cannot afford to retire and would not be able to survive on the reduced income of a state pension.
Last year, due to the recession, many people had to decrease their pension payments because the cost of living rose. Among the over-50s, the total pension reduction reached almost 18 billion.
The research also revealed that a fifth of retirees have returned to work because their monthly pension didn't cover their living costs. 4% of people who had previously retired returned to work full-time, 10% went part-time and 6% took on unpaid or voluntary work. Of the people who did not return to work following retirement, over 1/3 admitted they missed going to work and found it difficult to survive on a state pension.
In another shocking revelation, 16% of people of retirement age are working more hours than they did before their 50th birthday in an attempt to boost their savings.
When the subject of the Government's imminent spending cuts was risen, a huge 40% of over- 50s expressed concern for their future savings and expect to have a low income during retirement. Only 2% of pensioners thought they would be better off after the spending cuts.
This shows that citizens of pensionable age are really worrying about their future quality of life due to the economic downturn and the upcoming Government cuts which will no doubt affect pensioners and force many into continuing to work, when they would otherwise retire.
If you feel your debts are a problem, or could become a problem in the future, Sterling Green can help with bespoke debt management plans and offer an easy way to manage your debt. We communicate with your creditors on your behalf and negotiate for your interest to be frozen so you can focus on saving money and can enjoying your retirement that bit earlier.
Call us free on 0800 083 2827 to find out how we can help you.
