Recent figures released by the DWP have shown workers are retiring at a younger age now than in 1950, despite longer life expectancy.
However, pension expert Stuart Price, a Partner and Actuary at Quantum Advisory, says this is just a blip and retirement age will continue to increase as the state pension age continues to rise, and planning is paramount.
Speaking about the figures, Stuart Price said: “Many retiring now are part of the ‘golden’ generation that had access to good defined benefit arrangements for the majority of their working lives and can therefore afford to retire earlier.
“These defined benefit arrangements have closed to younger workers and have been replaced by generally inferior defined contribution arrangements.
“This, combined with the attitude of the younger generation to live for today and not to save for their retirement in the main, will see this reverse in the not too distant future.
“No doubt people in the future will be retiring later and having to supplement their retirement income by continuing to work albeit in a part-time or flexible basis.
“To help mitigate this the government needs to widen the auto enrolment net to include lower paid workers and the self-employed plus look to increase the minimum contributions paid to pension arrangements with perhaps further tax breaks to incentivise the lower paid to save for their retirement.”
Stuart Price, Partner and Actuary