According To Survey Made By Prudential, UK Adults Delay Retirement Because Of the Crisis

According to the new Prudential 'Class of 2009' retirement survey, around 2.2 million UK adults aged 45 and above are delaying their retirement in 2009 due to the state of the economy and the falling value of their investments. The

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According to the new Prudential ‘Class of 2009’ retirement survey, around 2.2 million UK adults aged 45 and above are delaying their retirement in 2009 due to the state of the economy and the falling value of their investments.

The Prudential survey also highlights that their concerns are so severe that those delaying retirement do not expect to be able to get their plans back on track for years to come.

Only one in four (25%) of those delaying drawing their pension in 2009 expect they will be able to retire before 2012, with an even higher number – two in five (42%) – expecting it will be 2012 or beyond before they can retire and one in four (23%) believing they won’t ever be able to afford to retire.

But, despite many adults delaying retirement, nearly one in three (30%) of those actually able to retire in 2009 are public sector workers, even though they make up just one in five people in the UK workforce.

The remaining 2009 retirees will be split 35% from private sector jobs and 15% from self employed roles, with the remainder coming from those who are unemployed or in other sectors.

“It is a reflection of the difficult economic situation that so many workers, and particularly those in private sector roles who do not benefit from public sector final salary pension schemes, are trying to delay retirement but there are other options available,” says Martyn Bogira, director of DC solutions at Prudential.

Martyn pointed out that even with the economy in its current depressed state, many annuity rates have performed better than many feared and there are a number of other pension income options available, like income drawdown, which can let workers delay buying an annuity until such time as the economy has started to recover.

“Now more than ever it pays to seek early retirement advice from an independent financial adviser and we would suggest that people start planning for their retirement early, ideally at least 15 years from retirement,” says Martyn. “It is vital that those saving for retirement continually monitor their investment mix to ensure they have the right risk profile to help minimise the impact of economic fluctuations and falling stock markets”

D.C.

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