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Retirement dreams are shattered

People&#39s dreams of early retirement are fading fast with 10 per cent less expecting to retire before 60 than two years ago, according to research by Virgin Money.

It says the prospect of people retiring early in their 50s is diminishing as awareness of the cost dawns on many who are now putting back retirement plans to continue working into their 60s.

Virgin&#39s research found that just 27 per cent of respondents now plan to retire before 60 compared with 34 per cent in 2001 and 37 per cent in 2000.

More significantly, 13 per cent of people now say they do not plan to retire until after the normal retirement age of 65. This compares with just 5 per cent in 2001 and 9 per cent in 2000.

The survey also found that despite 49 per cent of respondents believing their current retirement provision would be enough to live on, 46 per cent claimed their current arrangements were not sufficient while 5 per cent did not know.

Marketing manager Gordon Maw says: “These are staggering figures which show that early retirement is becoming a pipedream for millions.

“People are living longer but news of falling stockmarkets, lower annuity rates and the closure of final-salary pension schemes are already affecting people&#39s perceptions of their own retirement.”

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