Number Of Pension Age Employees Set To Increase

Many of us who are currently working are looking forward to the time when we can sit back and relax with our feet up when we retire. However, more and more people who are reaching retirement age are not retiring. It could be that for economical reasons they want to carry on working or simply that they feel they have more to give.

The number of people unable to retire at 65 is set to soar over the next 15 years, as poor savings and low pensions make retirement an economic luxury, say figures from the Office of National Statistics (ONS).

"For thousands of people, their pensions will not deliver the income that they thought they would," said a financial advisor.

"For many others, they have been in debt all their lives and simply cannot afford to retire. Many people in their 30s and 40s think it is fine not to save any money for the future and plan to keep on working. But what happens when their health deteriorates?"

And experts say that even those who are saving are failing to put enough away for the future - the average company pension fund for someone who retires at 65 is worth £40,000, equivalent to an annual income of just £2,000.

"For those older people who do not want to carry on working, it is critical that the Government delivers a fair and decent pension which allows them to enjoy retirement with dignity," said a spokesman for Help the Aged.

"No one over state pension age - either now or in the future - should face a situation where they are economically compelled to work."

For advice on pensions and investments it is wise to talk to an independent financial advisor to make sure you are getting the best deal for your individual situation.

If you would like to know more about pensions why not ask AnswerBank Business and Finance.