The Over 50s Will Now Work Even After Retirement Age

05 October, 2021 by Denzil Otieno 4 mins read Category:  Debt Money Personal Finance

The economic disruptions caused by the COVID-19 pandemic has forced millions of Britons to remain in work despite reaching the retirement age.

Britons have delved into their savings accounts, leading to a financial crisis—with the health crisis primarily affecting the elderly workers, and older workers will be forced to continue working.

Due to the necessity to financially support family and financial strains imposed by the pandemic, approximately three million Britons over 50 will have to continue working later in their lives.

Research conducted by OneFamily, a financial provider, revealed that over-50s would need to repudiate retirement up to four years—to make up for the financial constraints caused by the pandemic.

Twelve per cent of those who planned to retire early will need to push back their plans by seven or more years.

Over 50s to Work Even After Retirement Age. 

According to OneFamily, many over-50s have recently depleted their savings or investments. The research further indicated that more than 36% of people had lost money in the last 18 months, with savings dropping by £2,000 on average.

Mens’ investments and savings were affected more than those of women—approximately £260 more. And when comparing different age groups, those in their 60s have realized a drop in their finances, losing nearly £170 on average, compared to those in their 50s.

Meanwhile, 6% of over-50s say the worth of their pension has decreased over the same period.

Money was also tighter in the last 18 months as those in their 50s and 60s assisted close family members in financial need. Seventeen per cent of people used their savings to help relatives who have been affected by the pandemic.

Ten per cent of over-50s who are yet to retire would use equity release to assess the value of their home if it meant they could retire sooner. In the meantime, over 20% of this group wish there was more financial advice available for saving and planning for retirement. 

The study recommends that some areas of the country should postpone retirement more than others.  

Nineteen per cent of the Over-50s in London, 16% of West Midlanders, and 15% of South Easterners are the most likely to report that they will need to work longer hours, while 5% of East Midlanders 7% of those from Yorkshire, are much less likely.

Matthew Ellis Gives His Piece Of Advice 

The head of OneFamily, Mathew Ellis, noted that life savings are a result of unemployment, aiding family members in need of financial assistance and rising costs; thus, many people’s savings accounts are depleted.

The consequence of the pandemic will impact people for years, and it’s already affecting retirement schemes for more than three million adult Britons. 

He then advised that Equity release is an integral tool for releasing wealth from bricks and mortar. With ongoing concerns about the cost of care and financial strains on families, it’s anticipated that you will use equity release more frequently to enable a higher standard of living in retirement.

Pete Mugleston, MD and Mortgage Expert at Online Money Advisor, said that those concerned about the adequacy of their pension savings should figure out ways to solve their retirement savings once and for all before retiring.

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