Seven in 10 fear working past planned pension age

Retirement expectations have changed dramatically over the past five years as the implications of the downturn force more people to accept that they may need to work for longer than previously anticipated. One in ten adults believes they will never be able to give up work, while one in eight plans to work beyond the age of 70, according to the Aviva Real Retirement report.

The findings come in the wake of government proposals to increase the state pension age to 66 by 2016. The previous government had planned to raise it to 66 for men by 2024, but that could now happen in 2016, under controversial proposals set out by the coalition government.

The consequences of the downturn have driven a significant increase in the number of people expecting to work beyond their retirement age, the Aviva report found. In 2005 just 52 per cent of workers said they would have to work longer and 82 per cent planned to retire ahead of the state pension age, according to the equivalent research that year.

In 2005 the average male worker planned to retire at 60 years, with women targeting 59. But while a third of people would like to retire between the ages of 61 and 65, according to the latest report, 29 per cent now believe they will not be able to give up work until they are at least 66.

The change has been driven partly by the damage inflicted on pension funds by stock market volatility during the credit crunch.

However the report warned that the change in attitudes did not mean that most people accept the government's plans to hike the pension age. It found that just 7 per cent built their retirement plans around the date at which they can begin claiming the state pension.

Clive Bolton, retirement director at Aviva, said that when the idea of raising the pension age was first mentioned in 2005 most people were optimistic that they would be able to retire in their late 50s or early 60s.

"However, as our latest report shows, there has been a sobering realisation since then that this is unlikely to be the case, with nearly 70 per cent of adults now planning to work beyond the current state retirement age.

"This is particularly pertinent in light of the recent changes proposed by the government. It is therefore important that people review their retirement plans now to ensure that they are not disappointed when they eventually want to stop working."

The average Scottish male will be able to claim just five years of the state pension before he dies, under the controversial UK government plans.

Ivor Smith, 77, already had 47 years of service with Hoover as an apprentice, a toolmaker and a manager when he began his second career with B&Q, and is currently a "greeter" at a B&Q store in Parkhead, Glasgow.

He said: "I personally have no problem with the idea of working past the age of 70."

Separate research published by Aviva yesterday showed that many people over 55 are likely to struggle to fund the lifestyle they want in retirement.

While 43 per cent of over 55s view retirement as an opportunity to sample new experiences, more than half of those nearing retirement and earning between 20,000 and 30,000 a year have pension savings of less than 30,000, which would convert into a monthly income of about 165.

Ivor Smith, 77, already had 47 years of service with Hoover as an apprentice, a toolmaker and a manager when he began his second career with B&Q, and is currently a "greeter" at a B&Q store in Parkhead, Glasgow.

He said: "I personally have no problem with the idea of working past the age of 70."

Separate research published by Aviva yesterday showed that many people over 55 are likely to struggle to fund the lifestyle they want in retirement.

While 43 per cent of over 55s view retirement as an opportunity to sample new experiences, more than half of those nearing retirement and earning between 20,000 and 30,000 a year have pension savings of less than 30,000, which would convert into a monthly income of about 165.