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Increased life expectancy is 'changing retirement'

The Prudential said that increased life expectancy and improvements in general health are "changing how we think about retirement".

For many people retirement is now a gradual process rather than a watershed where you simply stop working one day and become retired the next, and that is reflected in the change in attitudes shown by our research.

Working past traditional retirement ages is not solely driven by financial pressures and the research shows growing numbers of people wanting to carry on working because they enjoy it and because it keeps them stimulated mentally and physically.

– Stan Russell of Prudential

Quarter of those due to retire not ready to stop work

Almost one in four people scheduled to retire this year say they are not ready to stop work, according to a report. A survey of more than 1,000 people nearing retirement found that one in seven had already delayed their plans.

One in four say they are not ready to retire. Credit: Chris Ison/PA Wire/Press Association Images

A wider poll of around 7,000 adults found that just over half would consider working beyond the state pension age because of financial considerations.

Prudential said its study also revealed that many people wanted to carry on working to keep mentally and physically fit.

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Pensions expert: You must have your own pension plan

"Significant cuts" are being made to the living standards of UK workers to prepare for their own retirement.

Research has found many people place too much reliance on the state to help them in later years.

Pensions expert, Dr Ros Altmann told Daybreak that it is vital people have their own pension plans.

She added: "It is so important to not have a fixed age where you think I won't do any work at all."

Report is a reminder of the difficulty of saving

This is why we've introduced the biggest change to pensions for a century by getting everyone saving into a workplace pension.

With your contribution being matched by your employer - and with tax relief from the Government on top - we have made sure it really pays to save for your retirement.

– Steve Webb, Pensions Minister

One in three saving nothing for retirement

On average, men in the UK have just under £73,000 in retirement savings, while women had around £20,000 less.

The UK has just over a third of the average retirement covered by savings.

  • One in three of more than 1,000 people surveyed in the UK said that they are saving nothing at all for their retirement
  • Two-thirds fear financial hardship, compared to just over half of people globally
  • Of those not saving for retirement in the UK, three-fifths said that high living costs are holding them back
  • Those aged 35-44 say they felt particularly squeezed

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HSBC: People are 'putting off the inevitable'

The UK's 12-year retirement savings shortfall is the biggest out of 15 countries.

The average retirement savings gap for the UK is eight years, two thirds more than other countries.

The UK's 12-year retirement savings shortfall was the biggest chasm in the study, which covered 15 countries. The average retirement savings gap found across the research was two-thirds of that in the UK, at eight years.

People are living longer, through tougher economic times, but their expectations about their standard of living in retirement remain unchanged.

They are putting off the inevitable, which is the reality of significant cuts to their living standards in their twilight years, after their savings run out.

– Christine Foyster, head of wealth development at HSBC

UK workers amongst worst prepared for retirement

UK workers are having to make "significant cuts" to their living standards to prepare for retirement.

With savings usually lasting around seven years, the average retirement is expected to carry out for 19 years.

UK workers amongst the worst prepared in saving for retirement Credit: John Stillwell/PA Wire

According to research from HSBC, UK workers are the worst-prepared, facing 12 years of living standard cuts.

Research also found that people are placing too much reliance on the state to help them in their later years.

'Greater flexibility needed' in pension saving

Greater flexibility may be needed in pension saving, the head of investment propositions at Scottish Widows has said in response to a new study that shows that the next generation may have to start saving at 25 years old to retire by their 70s. Iain McGowan said:

Offering more flexibility that combines the accessibility of an Isa with the tax benefits of a pension could help future generations face up to the twin challenge of saving for short-term financial hurdles like a deposit for a mortgage or a wedding while at the same time setting aside enough for retirement.

– Iain McGowan, head of investment propositions at Scottish Widows

Next generation will 'work longer into their 70s'

Someone born in 2012 could expect to build up £73,000 worth of student debt, according to economist Steve Lucas.

According to a new study, financial pressures from university and housing costs will mean the next generation would have to start saving at the age of 25 to prepare for 30 years of retirement. Mr Lucas said:

In the future, older workers - especially in the professional and business services sector - are likely to stay working longer into their 70s, but the nature of this work will become more flexible and probably more part-time.

Workers in manual or vocational careers are also likely to look to extend their working lives by undertaking a less strenuous, more part-time role.

– Steve Lucas, Economist
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