Retirement fears stalking 55-year-olds

Published on Wednesday 19 September 2007 11:55

MORE than 1.5 million people aged 55 and over say they cannot afford to retire because they have not got a big enough pension.

Research by Edinburgh-based firm Scottish Widows found that one in four people in that age group will not stop working at the current state retirement age - 65 for men and 60 for women.

More than four out of ten also make the point that the state pension simply won't be enough to support the standard of living they would like in retirement.

And a total of 53 per cent of all those aged 55 and over believe people should be forced to save for their retirement.

Ian Naismith, head of pensions market development at Scottish Widows, said: "The current generation of over 55s is definitely divided into 'haves' and 'have-nots'.

"The 'haves' generally have good employer pensions, often based on their final salary, and can retire at or before state pension age with good incomes. The 'have nots' are discovering that they will have to work for longer than they might have expected."

In the 55+ age group, 41 per cent agree that money is tight and they don't have much to spare and 23 per cent are more worried about their financial security than their health. For 26 per cent, the only investment they have is the value of their house.