Retirement 'will be delayed by 10% of Brits'

Those who intend to finish working in 2012 may not be in a position to do so and could have to delay their plans as a result. A new study conducted by Prudential assessed the finances and aspirations of those who hope to retire this year. Over two-thirds (68 per cent) of respondents cite their inability to afford to fund themselves with the current value of their pension pot as the reason they are in this position. However, it was noted 32 per cent claim they do not feel ready to retire and the average age of respondents was 60-years-old. This is a similar age to those who were surveyed in 2011 and is seven months younger than people in this position in 2010. Retirement income expert for Prudential Vince Smith-Hughes said that the common characteristic is that people are making active choices about their provisions. Seeking pension transfer advice was recommended, as this can help individuals identify the financial products that are best suited to their requirements and could help them maximise their income in later life. People may wish to consider doing this before chancellor of the exchequer George Osborne's next budget announcement on March 21st. This is because the cap on the annual pension allowance may be reduced from its current limit of £50,000. If this were to be announced, high rate taxpayers who currently make 50 per cent contributions will miss out on up to £25,000 in duty relief. "It is, however, undeniable that there is a new retirement reality for a significant number of retirees. People are living longer, and for many, the very real prospect of a thirty year retirement is either unpalatable or unaffordable, hence the decision by many to continue to work," Mr Smith-Hughes remarked, adding: "Retirement is also becoming a more opaque concept, with many people working part-time, either out of necessity or desire." Ashall Glover Financial Services, pension transfer specialists Posted by Sarah Williams