Prudential reveals UK adults delaying retirement due to economy

Released on: March 12, 2009, 5:30 am
Author: Prudential
Industry: Financial

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 per cent) 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 per cent) - expecting it will be 2012 or beyond before they can retire and one in four (23 per cent) believing they won’t ever be able to afford to retire.

But, despite many adults delaying retirement, nearly one in three (30 per cent) 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 per cent from private sector jobs and 15 per cent 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," said 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.

Martyn continued, "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. 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."

The information contained in Prudential UK's press releases is intended solely for journalists and should not be used by consumers to make financial decisions. Full consumer product information can be found at www.pru.co.uk.

Ends

Survey conducted by Research Plus among 1,000 UK adults aged 45+ between 10 - 18 November 2008 using an online methodology

* Office of National Statistics 2007 population estimates, 2.2 million adults aged 45 and above.
** Of the survey group, the youngest age given for individuals planning to retire in 2009 was 45
*** ONS Labour Market Study, public sector staff account for 20.4 per cent of employed population in June 2005

Contact Details: Media Enquiries
Jonathan Akerman
Prudential
3 Sheldon Square
London
W2 6PR
020 7150 3177
www.pru.co.uk