According to research from Baring Asset Management, one in seven non-retired people, equal to around 5 million individuals, have no plan on retiring. In fact, many people are uncertain on retirement planning with a third of non-retired people not knowing when they will retire- this number is around 12 million people.
This result represents the same number in Barings’ survey last year, which has been the highest since their annual study began in 2008. As for the results on the uncertainty surrounding retirement, the number of over 65s unsure of when they will retire has spiked to 30% compared to the 18% in 2013 and 15% in 2012 & 2011.
This year, Barings’ research has found overall that the average age people say that they wish to retire at is 63 years old, although this changes slightly for those aged 25-34 years old, where the expected age is 61. As for those over 65, their expected retirement age is at 70.
Rod Aldridge, Head of UK Wholesale Distribution at Barings, said: “It is apparent that retirement planning, especially among the over 65s, has become increasingly unpredictable over the last few years. In light of the recent changes to the pensions system, the concern is that this age group may have to compensate for insufficient pension provision and financial planning.”
The research commissioned by Barings had also revealed that a third of people have no pension, a figure that has stayed the same since the first annual survey in 2008. In regional terms, the North West had the highest proportion of people who had no pension, while London had the highest proportion of people who did have a pension, at 71%.
The number of men with no pension has slowly declined, from 30% in 2008 to 25% in 2014, while for women it has risen to 41% from 39% in 2013.
Aldridge also commented on this: “We are concerned that so many people who should have plans in place say they do not have a pension. This confirms the need to focus on effective retirement planning. We urge everyone to seek a better understanding of the benefits they can get from planning ahead and, especially to think about retirement provision early.”