Number of people not planning to retire remains at record level

One in seven (14%) non-retired people, the equivalent of around 5 million individuals, do not plan on retiring, according to the latest consumer research by Baring Asset Management. This represents the same number (14%) in last year’s Barings survey – the highest figure since the Barings’ annual study began in 2008.

Uncertainty surrounding retirement planning remains high with a third (34%) of non-retired people not knowing when they will retire – the equivalent of around 12 million people.  Significantly, the findings reveal a bleak picture for those aged over 65, with around a third (30%) uncertain of when they will retire compared to 18% in 2013, 15% in 2012 and 15% in 2011.

This year’s research from Barings found that, overall, the average age people say they plan to retire is 63 years old – though for people aged 25-34 years old, the expected age is 61.  For people over 65 who have yet to retire, this year’s survey found that their expected retirement age is 70.

Rod Aldridge, Head of UK Wholesale Distribution at Barings, said: “It is apparent that retirement planning, especially among the over 65s, has become increasingly unpredictable over the last few years.  In light of the recent changes to the pensions system, the concern is that this age group may have to compensate for insufficient pension provision and financial planning.  What’s more, with the increasing longevity of the British population, such problems may become a growing trend.”

The findings from the research commissioned by Barings also reveal a third (33%) of people – the equivalent of 12 million – say they have no pension, a figure that has remained largely the same since the annual survey was first carried out in 2008 (35%).  Regionally, the survey also found that the North West had the highest proportion of people with no form of pension (41%); London was found to have the highest proportion of people witha pension (71%).

While the number of men with no pension has steadily declined, from 30% in 2008 to 25% in 2014, the number of women has risen, to 41% from 39% in 2013.  The difference between men and women in this year’s survey – 16 percentage points – illustrates a growing gender gap regarding pension provision.  In 2008, when the annual survey was first carried out, the difference between men and women stood at just 9 percentage points.

Rod Aldridge comments: “We are concerned that so many people who should have plans in place say they do not have a pension.  This confirms the need to focus on effective retirement planning.  We urge everyone to seek a better understanding of the benefits they can get from planning ahead and, especially to think about retirement provision early.”