Third of over-55s say retirement has been derailed

According to a new survey, more than one in three workers age 55 or older say the current economic climate has derailed their finances and millions are abandoning their retirement plans as a result.

Double-digit inflation, rising energy costs and turbulent stock markets hitting the value of pensions are among the factors influencing decisions to postpone retirement. About a quarter of people say they will continue to work after the age of seventy.

Only a third of the 2,000 people surveyed had a financial plan to lead them to an affordable retirement, while half had no idea how much they would live on in old age, according to research by financial advisor My Pension Expert. But just over a third said they were confident they could retire when they wanted to.

Chief executive Andrew Megson says: ‘Unfortunately, it doesn’t appear that a sense of duty will keep the over-50s in work, as the government hoped, but that they will work out of sheer necessity.

“No one should feel pressured to postpone retirement plans after decades of hard work.”

Last month, the city’s financial regulator, the Financial Conduct Authority, said it would review the way retirement advice is provided to everyone.

Less than one in ten people use an independent financial advisor for guidance on retirement planning. Many are put off by the cost of assistance, which can add up to at least 1 percent of a pension pot. In addition, all people over 50 are entitled to a one-hour free consultation with Pensioenwijzer to discuss their pension options.

The government-backed scheme does not provide full financial advice, but it does provide impartial guidance on how to withdraw money from pension pots.