1 in 10 will delay retirement in 2012

Tuesday 14th February 2012

More than ten per cent of people who had planned to retire during 2012 are making alternative arrangements and putting off drawing their pension for the time being, according to the latest results from Prudential's Class of 2012 research.

Now in its fifth year, Prudential's research focuses on the finances and aspirations of people planning to retire.

Of those deferring their retirement, a third (32%) claim they do not want to retire yet, while two thirds (68%) say they are putting it off because they can't afford to retire as originally planned.

However, showing that giving up work before growing too old is still an aspiration for many, the average age of people planning to retire this year is 60 years old - a similar age to last year's survey and seven months younger than in 2010.

“Although many people think the idea of retiring as early as 60 is out-dated, the majority of this year's retirees are defiantly sticking to that plan,” said Vince Smith-Hughes, Prudential's retirement income expert.

“It's likely that many of these people will have accumulated benefits in final salary pension schemes that generate an acceptable income in retirement - perhaps signalling that the golden era of retirement for baby boomers isn't over yet.

"It is, however, undeniable that there is a new retirement reality for a significant number of retirees. People are living longer, and for many, the very real prospect of a thirty year retirement is either unpalatable or unaffordable, hence the decision by many to continue to work.

“Retirement is also becoming a more opaque concept, with many people working part-time, either out of necessity or desire.”

Prudential has been conducting its "Class of" retirement research annually since late 2007. Each December, people planning to retire during the following 12 months are surveyed.

Prudential says the research provides a valuable snapshot into the financial situations, expectations and attitudes of that year's retirees.

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