The financial strain of later retirement


Recent Office for National Statistics figures show the number of people working beyond age 65 has risen at the fastest rate since records began in 1992. Financial pressures are cited as the reason why an additional 40,000 people Q2 2010 felt unable to retire.

I imagine that not many people relish the idea of having to work after the normal retirement age. But this seems to be an increasing trend.

The pressures of buying a property and having a family later in life or delaying employment in favour of travelling have meant more people still have significant financial responsibilities after reaching 65.

Latest figures state that one in 12 people over 65 are still working, be it part-time or full-time.

With the government announcing that it may scrap the default retirement age this is set to continue.

What does this mean for the financial services market? Traditionally advice has been to ensure that debt is cleared before retirement. But with new demands on people we can expect further change, with mortgages stretching beyond age 65.

This trend is set to grow, with more financial pressures on the majority of individuals for longer.

Whether people continue to work to meet their financial commitments, economise to make ends meet or to turn to family members for support, I hope they consider all their and their family’s needs when deciding when to retire, including putting the right protection cover in place.