New research has revealed that 66% of the British working population expects to work beyond 65. Alarmingly, over one in ten predict they will be working beyond 76, or think they may never retire.
- Almost three quarters of those who expect to be working beyond 65 say it will be because they cannot afford to retire
- 13% will carry on working to provide financial support to their children
- Only 7% of the British workforce is ‘very confident’ they will have adequate income in retirement
- Just over one in four of those who expect to work beyond 65 say they will do this because they enjoy working and worry they will get bored if they stop
The figures from Portus, the employment benefits consultancy firm, revealed the main reason for working beyond 65 – given by 74% of those who believe they will do this – is that they do not think they will have enough money to fund their retirement unless they continue to work. Some 13% believe it will be because they will have to support their children financially, and 4% say they will be helping grandchildren.
For homeowners who would struggle to get by on their pension income alone, the answer could potentially lie in their home’s equity, which is likely to have benefitted from significant increases over the last couple of decades. Figures show that a house purchased thirty years ago in 1995 for the average price of £50,937 would be worth £196,305 today – an increase of £145,368*.
Geoff Charles, CEO of Bower said: “It is great news that older workers today have the choice to continue in paid employment for as long as they need or want to. For those working past their intended retirement age for monetary reasons, it is vital they receive greater access to advice or guidance regarding their financial options.
“How to use their pension savings whilst still at work should be explored, for example, as well as how to use the equity in their home to boost their retirement income. Downsizing to a smaller home or a less expensive area should be considered, as well as the option to unlock some of the money they need with an equity release plan.”
Anyone looking to release equity from their home should speak to an independent specialist in retirement lending. Call free on [tel] and take advantage of a FREE, no-obligation home appointment.
This is a lifetime mortgage or home reversion plan. To understand the features and risks, please ask for a personalised illustration. Bower Limited is Authorised and Regulated by the Financial Conduct Authority. Financial Services Register Number: 451607.
*Nationwide House Price Index