One in five people do not know when they will retire, new research from Hargreaves Lansdown has found.
The firm’s data showed 50% of people thought they would retire between the ages of 61-70, with 23% planning to do so at some point between the ages of 61 and 65 and a further 27% earmarking the period between 66-70.
However, while 16% of people were targeting retirement before the age of 60, there were a further 14% who thought they would retire after the age of 70, while 21% were unsure.
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: “While continuing to work because you love what you do is a huge positive, no-one wants to be in a position where they have to keep working because they don’t have enough put by in their pension.”
Further data from Hargreaves Lansdown’s Savings and Resilience Barometer shows that just 36% of households are on track for a moderate retirement income, which shows there is still much work to be done.
“Having a plan for what you want your retirement to look like is vital. For some it will include lots of travel, while others will want something more modest. Once you’ve got an idea of what you want, then you can begin to estimate how much that might cost.
“Using an online pension calculator will give you an idea of how much you are on track to receive. If it’s enough then that brings real comfort, if it isn’t you still have time to do something about it,” said Morrissey.
According to Morrisey, increasing pension contributions every time someone receives a pay rise and checking whether an employer is willing to pay more through an employer match can help to boost retirement pots.
Morrissey added: “Taking actions like this on a regular basis means that whether you plan to stop work at 60 or work into your seventies and beyond you have control over that decision and can retire on your own terms.”
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