Westminster's measures of increasing the state pension age has meant that more than half of women in UK have to work until the exact age of 61 and 9 months, in order to get their pensions. These figures will keep on rising according to the Office of National Statistics (ONS). It is expected that in 2018, the age of retirement will be 65 and two years after, 2020, it will reach 66.
Poor company pensions and low saving rates are forcing many women to work until their sixties as they might not have other source of income. These ‘grey workers’ do not have the chance to decide whether they retire earlier as the economic crisis is forcing them to keep on earning money to fund their basic living expenses.
In Scotland, Deputy First Minister Nicola Sturgeon has suggested that people in Scotland could get pensions earlier. Ms Sturgeon explained her concerns about Westminster’s accelerated timetable for increasing the state pension age, claiming the implications that these new measures will bring for individuals.
Do we have problems differing retirement expectations from reality?
Current workers who are planning for retirement often envision retirement as something very different from what current retirees are actually experiencing. According to the ONS, only 15 percent of current workers envision a retirement that involves not working at all. While most workers would like their retirement to include volunteer work or paid employment. As we move into a retirement system that relies more on defined-contribution than defined-benefit plans, people are realizing they may need to work a little bit longer. Most of the retirees surveyed don't receive any income from employment. Planning to work through your retirement doesn't necessarily mean you will be able to find a job, or be able to work over the age of 60.
How long should we work and save for, to secure our retirement?
Most workers think their savings or investments will need to last for between 20 and 29 years. Only a quarter of the employees surveyed think their retirement savings and investments will need to last for 30 or more years. Whereas most retirees think their savings needs to last for 30+ years after retirement. But what if you end up living until 100? Does this mean you will need to work until you are 70+ years old?
What do you think about the rise of the retirement age in UK? Share with us your opinion!
Full article: Becky Barrow, Half of women are still working at the age of 60... and men are squeezed out by rise of the working mum. Daily Mail Online. 25.09.2013