Only four in 10 working over 60s feel prepared for retirement, research reveals

Fewer than half of workers aged over 60 said they feel prepared for retirement, raising concerns about the adequacy of support for people preparing for life after work.

Research from Just Group into the experiences and attitudes of the ‘Baby Boom’ generation revealed that many approaching and at State Pension age but still working, were not confident about their retirement preparations.

Among the 60 to 64 age group more than three-quarters (76%) had not retired.

Of these, 39% said they felt prepared for retirement with 38% stating they did not feel prepared with 23% feeling neither prepared nor unprepared.

For the age 65 to 69 cohort which straddles State Pension Age, one-third (31%) were yet to retire.

Of these, 45% said they felt prepared for retirement while 31% felt unprepared, with 24% neither prepared nor unprepared.

Stephen Lowe, group communications director at retirement specialist Just Group, said: “There are more
than three million working people aged between 60 to 69 in the UK and our figures suggest that at best a
million feel prepared for the step into retirement.

“There’s a clear split between those who are approaching retirement with confidence and those who don’t feel prepared, plus a significant minority in the middle unable to answer one way or the other.

“Retirement decisions – when to stop work, how to take pension income, how to plan for later life – can be daunting. It’s likely many people feel unsupported or unsure where to start.”

He said that the research revealed that about three-quarters of working Baby Boomers have a workplace
pension, but this is split between 45% with a defined contribution pension and 39% with a defined benefit
pension (only 10% have both).

17% have never had a workplace pension and a further 10% aren’t sure.

Lowe continued: “There’s an assumption that most Baby Boomers have defined benefit pensions but a larger proportion have defined contribution arrangements where they will have to choose how best to access their pension money, balancing taking the cash they need while ensuring the fund keeps paying for as long as they need it.”

“Forward-thinking employers and pension companies are putting more resources into place to help people in the run-up to and at retirement.

“It’s important that people recognise the value of the support that is available and take advantage of it.”