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Older workers postpone retirement due to lack of savings

Broken-Piggy-Bank-Savings-Business-700.jpgOlder workers are postponing retirement plans in order to support either their own children or parents, a new report shows, but a lack of savings is still delaying leaving the job market.

A study from Aviva indicates that for nearly a third of over-50s workers say they are only still working to support the financial needs of their children. A further one in 10 are only working to support parents or partners’ parents.

However, the key reason for working longer remains a lack of savings. Almost half of those retiring later than planned say this was because they had not built up enough pension, the study shows.

62 per cent of those who have an expected retirement age say they have increase this from what it would have been a decade ago.

Aviva savings and retirement managing director Lindsey Rix says: “With children flying the nest later and later, many over-50s are shouldering the responsibility of putting their families’ financial needs ahead of their own for a prolonged period of time. As a result, many are facing a dilemma over delaying their retirement, while others are struggling to maintain their retirement savings habits.

“Workers of this age are in a key stage of retirement planning and would benefit from saving as much as possible to ensure a comfortable retirement, but are facing unprecedented hurdles to do so. Employers and government, as well as individuals, have important roles in helping to make saving a reality.”

The Aviva report looked at data from 3,327 UK adults. 1,829 of these are still working.

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  1. Seems nearly 50% of those retiring are back at work witnin a year anyway (often part-time), as they are bored out of their minds and have lost all sense of puropose. Retirement as we once new it is a myth. Today’s 65 year old is not the same as a 65 year old in the 1950/60/70s. Apprecaite that some forgot or could not save so working on is a necessity. Some lack a proper financial planner who could work out accurately if they do have their ‘enough’ or not.

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