Fifth 'expect to work until 70'

File photo dated 03/05/10 of two women walking along the beach in Bournemouth as one in 12 people planning to retire this year will still be paying off their mortgage. PRESS ASSOCIATION Photo. Issue date: Friday January 24, 2014. Prudential, which carries out research each year to gauge the state of people's finances as they approach retirement, found that one in six (17%) people ending their working lives in 2014 will still be burdened with some form of debt, including mortgages, credit cards or personal loans. Some 8% of those planning to retire in 2014 said they still have not fully paid off their mortgage and around 10% still have credit card debt piled up. On average, those who still have some form of mortgage and/or non-mortgage debt owe ?24,800, although this figure is around one fifth (21%) lower than the typical debt in 2013 of ?31,200, researchers found. Across Britain, Scotland had the highest rate of people retiring this year with debts outstanding. Nearly one quarter (24%) of people retiring in 2014 there said they would have some form of debt. See PA story MONEY Retire. Photo credit should read: Chris Ison/PA Wire

%VIRTUAL-SkimlinksPromo%One in five Britons thinks they will be working until they are at least 70 years old - making them almost twice as likely to have this expectation as workers across Europe - according to a new global report.

Some 19% of Britons predict they will work into their eighth decade of life, compared with an average of 12% of workers in Europe generally, according to a survey of more than 30,000 people in 60 countries by market research company Nielsen.
Some 44% of Britons expect to retire after the age of 65, which is almost double the global average share of people who said this at 25%.

One in 22 (4.5%) of Britons surveyed believe they will still be working at the age of 76 or over.
Almost half (46%) of British workers surveyed said their expected retirement age is later than they would like.

More than one third (35%) of working Britons expects to be relying on their savings to help them get by in their later years. More than half (52%) feel they will be financially better equipped than their parents for retirement, although this percentage was found to be significantly lower than the global average at 70%.

Over half (54%) of British consumers reported having enough money to live comfortably on as one of their biggest fears about ageing. Losing mental agility and the ability to care for basic needs were found to be Britons' biggest concerns about growing old, with nearly two thirds (63%) of people
surveyed citing these as worries.

Nielsen senior vice president for financial services in Europe Eleni Nicholas said: "Britons have a bleaker retirement outlook than people globally; they're almost twice as likely to expect to be working after 65, and a third less likely to believe they'll be financially better off than their parents."

The findings come as the Government's landmark programme to encourage people to start saving or put more money away for their retirement continues to be rolled out.

The move aims to head off fears of a looming retirement savings crisis, with people living for longer but failing to put enough money aside for their old age.

Around 10 million people are expected to be newly saving or saving more as a result of the Government's scheme to automatically enrol people into workplace pensions, which started in autumn 2012 with larger firms.

So far the scheme is seen as being a success, with a higher-than-expected rate of nine in 10 people staying in the pension they have been placed into, rather than opting out.

A Department for Work and Pensions spokesman said: "We have abolished the default retirement age and extended the right to flexible working so people can work longer if they want to, and more older workers are choosing to stay in the labour market.

"Our workplace pension reforms are making a positive difference to people's retirement prospects and will help millions secure a better future."

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Fifth 'expect to work until 70'

If, like many Britons, you have failed to save the cash you need to maintain a comfortable standard of living in retirement, one option is to sell your home and downsize to a smaller property, using the money leftover to cover your living costs.
If moving out of the family home is too much of a wrench, however, the good news is that equity release schemes allow you to stay in your house or flat while still using the equity built up in it to provide some extra cash. The downside of the schemes, which work a bit like mortgages, is that you may not have much left to pass on to any children or other relatives.
But that's a small price to pay for a reasonable standard of living. For more information, try Age UK on 0800 169 6565.

Choosing the right annuity can have a significant impact on your retirement income. And as with most pensions, you automatically have what's called an 'open-market option' (OMO), you can scour the market for the highest annuity rate.
It is worth checking what your pension provider is offering first, though, as some companies offer guaranteed rates for existing customers that are likely to beat those available elsewhere. The Pensions Advisory Service on 0300 123 1047 is a good place to get some free advice.

On retirement, most people convert their pension fund into a guaranteed income annuity that pays out the same amount every month for the rest of their lives.
However, you can also choose an increasing annuity that pays out smaller amounts in the first few years but offers larger payments further down the line. This may prove a wise move if the rate of inflation remains at over 2%.

It is now easier to work later in life because the "default retirement age" has been scrapped.
People approaching retirement age and worrying about money can therefore choose to work for a few years longer - potentially transforming their financial situation. Other than the extra income from working, these people can look forward to higher state pensions, and higher annuity rates due to their greater age.
They can also benefit from bigger tax allowances and the fact that they no longer have to pay National Insurance contributions. Check out this nidirect website for more details.

You could get a much better rate with an impaired-life annuity if you have a medical condition that is likely to reduce your life expectancy.
Incredibly, even snoring, which is a common symptom of Sleep Apnoea could have an impact.
According to figures from MGM Advantage, a man with this condition could receive an extra £12,000 retirement income over the course of their retirement - or £571.44 extra money each year. Click here to find out more.

To maximise your retirement income, it is vital to ensure that you are receiving all the benefits to which you are entitled. These include the basic State Pension, and in some cases, the additional State Pension.
If you are on a low income, you could also qualify for the guaranteed element of Pension Credit, while those with some savings may get the savings element of this benefit. For more information about these and other benefits such as the Winter Fuel Payment, click here.

Many older couples rely on the pension income of one person - often the man. Should that person die first, the other person can therefore be left in a difficult position financially.
One way to prevent financial hardship for the surviving person is to take out a joint life annuity that will continue to pay out up to 67% of the original payments to the surviving partner should one of them die.
The disadvantage of this approach, however, is that the rate you receive will be lower. Again, the Pensions Advisory Service on 0845 601 2923 is a useful first port of call if you are unsure what to do.


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