An increasing number of workers approaching official state pension age are choosing to delay their retirement. According to Prudential, one in four workers due to retire this week say they are not ready to give up full-time employment - and as a result, half are delaying their retirement.
![](/includes/images/QuotedTextTop.png)
Plan ahead to ensure a comfortable retirement
![](/includes/images/QuotedTextBottom.png)
In the Pru's Class of 2014 survey revealed that the majority of workers would work past 65 - if it could ensure a more financially comfortable retirement. Those approaching retirement also stated health reasons for prolonging their employment, saying they thought continuing to work would keep them mentally and physically fit. Of those questioned, only three in 10 said they had no financial concerns about retirement.
While the default pension age of 65 has been phased out by the Government, some employers can set a compulsory retirement age if they can clearly justify it.
Stan Russell, a retirement income expert at Prudential there was no one size fits all solution to retirement, but it was important people plan ahead for retirement and do as much as possible to ensure a comfortable retirement.
He suggested consulting a financial adviser or retirement specialist well ahead of the planned retirement date will help.
The importance of pension planning was flagged in a report this week from TD Direct Investing which revealed Britain lags behind both the US and Japan when it comes to planning for retirement.
According to research collated by YouGov on behalf of TD Direct, 40% of Britons plan to make no pension contributions over the next year. While this 12 month hiatus may not seem like much as a proportion of the average 40 year work lifespan, the effects of compound interest mean this blip could end up costing a worker considerably more by the time they come retire.
“With wages falling in real terms and Governor Mark Carney advocating ‘low rates for longer’, we are calling on all Britons to consider the investment opportunities now available in the market which might help them avoid being caught out during later life,” said Stuart Welch, of TD Direct Investing.
The state pension age is currently 62 for woman, although it is being gradually raised to 65 over the next four years. After 2018, men and women will be able to claim their state pension at the same age, and state pension age will increase from 65 for both sexes to 66 over the course of 2019. A table showing when you can expect to retire can be found on the Department of Work & Pensions website.