View more on these topics

&#39Stockmarket falls force many workers to delay retirement&#39

A quarter of older workers intend to retire later than they planned two years ago because their savings have been hit by stockmarket falls, according to research by Watson Wyatt.

Its survey of 4,500 workers aged between 50 and 64 reveals there is a strong relationship between those who are delaying their retirement plans and those whose savings have fallen in value in the last few years.

Forty-nine per cent of respondents said their savings have declined a lot over the last three years while 20 per cent said their savings have fallen a little. Only 20 per cent said their savings have increased while 11 per cent said they have stayed the same.

However, for those who have already retired, the survey shows there is little appetite to return to work, even among those who have suffered significant losses in their savings.

Watson Wyatt says this provides further support for theories that the decision to retire is rarely reversed.

Economic researcher Jonathan Gardner says: “The bear market from the end of 1999 is the first time in which significant volumes of retirement savings were at risk in equity markets. The euphoria of the late 1990s was such that this decline or at least its scale was probably not anticipated by most investors.”


Equity-release business booms

Equity-release lending shot up by 121 per cent in the first half of this year compared with 2002. The figures from the Council of Mortgage Lenders, based on returns from 21 lenders active in the equity release market, show that £498m was borrowed by older homeowners in equity-release mortgages – more than double the total […]

Abacus wrapper deal cuts out providers

Financial services consultancy Abacus is part of a group preparing to set up a venture that it believes has the potential to challenge life companies. The business model involves offering wrapper products direct to investors without involving providers in the distribution model and without the IT overheads of the traditional range of products. The firm […]

Societies hit 14-year loan high

Building society gross advances hit £4.2bn in July -the highest figure since August 1988. The figures represent a substantial rise from June&#39s gross advances which totalled £3.94bn and £3.6bn in July last year. Net advances were £1.58bn in July, up from £1.22bn a year ago, while approvals rose to £4.29bn from £3.79bn. Net inflows remain […]

July sees increase in mortgage lending

BBA figures show that gross mortgage lending increased to £16.9 billion in July, up 13 per cent from June and 16 per cent from July last year. The BBA says that there were 281,500 mortgage loans approved in July, 10 per cent more than in June and 19 per cent more than in July last […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm