Debt a factor in retirement cancellation?

Many people will be wondering how they can fund their retirements in the current economic climate, but one group has gone further and declared it will…

Many people will be wondering how they can fund their retirements in the current economic climate, but one group has gone further and declared it will not be seeking to stop working at all.

A poll by Standard Life has found six per cent of those aged between 45 and 65 – 787,000 in total – have now got no plans to retire.

Furthermore, 21 per cent of this age group believe their current plans will not be adequate in the current economic circumstances.

Commenting on this, head of pensions policy at Standard Life John Lawson remarked: "The current financial crisis has brought into sharp focus the need to make and review appropriate plans. This will clearly be challenging but there are many things you can do to make your retirement years as secure as possible."

While seeking advice on pensions may be part of the solution, another issue may be debt, as those who face having to pay this off will have less money free to put towards retirement funds.

Debt consolidation measures may therefore help some people to be able to retire after all.

Younger people might be considered less vulnerable as they have longer to plan ahead, but they may find they end up with a lifetime debt habit unless they are more realistic about their finances at the student stage, according to Friends Life.

The firm polled 16-19 year-olds and found girls are more realistic about the need to work part-time and take on unpaid internships to get graduate jobs.

However, it also found both sexes have inflated salary expectations and the site said this demonstrates the need for good financial education.

By Joe White
 

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