Zarah Choudhary16% of people have no idea when they will stop working, with over-55s more likely to be uncertain than younger age groups, according to Helen Morrissey, head of retirement analysis at Hargreaves Lansdown.
Morrissey said: “Some could love what they do and have no plans to stop, others may have not yet really engaged.
“Others may have realised that right now, they don’t have enough and are playing catch up so want to keep their options open.”
She suggested that younger people may feel more confident about retirement timing, but this could reflect optimism before complexities like affordability arise.
The analysis highlighted the importance of proactive retirement planning and checking in with pensions regularly, according to Morrissey.
She said: “Having an idea of what you want from your retirement can give you an idea of how much it will cost, and this in turn can give you a sense of how much you need to have saved.”
Tools such as online pension calculators can help individuals estimate how much they are on track to receive and explore the potential impact of contributing more over time, if affordable.
Morrissey also stressed the importance of tracking down pensions from previous workplaces, noting how easily they can be forgotten as people change jobs.
She said: “That small pension that you had in a job twenty years back could well have grown to a sizeable sum and can make a major impact on how much you have.
“It could even bring your retirement forward by a few years.”
For those who have lost track of pensions, the Government’s Pension Tracing Service can assist in locating them.
Consolidating pensions into a single account can provide a clearer view of savings and improve decision-making.
However, Morrissey cautioned against consolidating without checking for potential downsides such as high exit fees or losing valuable benefits like guaranteed annuity rates, which could significantly enhance retirement income.
Morrissey noted that the most common expected retirement age was between 66 and 70, corresponding with the current state pension age of 66, which is set to rise in the future.
She said: “The next most popular response – between age 60-65 – can be the result of some savvy saving but also a long-held perception given that state pension age was once 65.”
Morrissey said: “Having an idea of what you want and when you might like it to happen can really help you take control.
“This will help you plan with confidence that you are going to get the retirement you want at the time that you want it.”
