A recent study by Aviva has shown that many of us heading towards retirement are to stay in employment beyond the current standard retirement age, roughly 70% of respondents.
With this many find themselves unprepared for retirement, the Aviva Real Retirement Report has found those between the age of 55 and 64 have falling household incomes and a limited saving pot.
Of those over 55 the majority of income would be made up of state pension followed by employer pension provision and then any wages or earned income.
The top reason for individuals continuing to work beyond their retirement age is to improve their financial standing. Of all respondents 41% stated they wanted to continue to work for their current employer beyond the official retirement date with a quarter of these wanting to opt for a part retirement, still working to a lesser degree.
The current enforced retirement age at some organisations will mean 5% of the respondents will not have an option to continue to work beyond their set retirement age.
The state retirement age is only set to increase, however with many considering working way beyond this do we all need to be looking at a retirement planning many years before we are today.
The last few years of work prior to retirement are generally considered the years in which many prepare for retirement. however the research from Aviva has shown that salaries tend to fall in this build up to retirement which often makes it harder to prepare.
The research has highlighted our need to consider planning for our future at an earlier age. should this be the responsibility of the individual or a combination which includes their employer and the state, well that is debatable but we can all do our bit to ensure we plan for our own future.