Many older people are being forced to delay their retirement due to the fact they have not been able to put away enough money to live on if they were to give up their jobs.
Homeowners aged between 55 and 95 may therefore be looking into ways to boost their financial situation at the present time, with lifetime mortgages one of the options available to them.
According to new research by Prudential, as many as one in ten people are having to stay in work for the time being, even though they had planned to retire during the course of 2012.
However, a third of those who responded to Prudential's Class of 2012 survey indicated they are simply not ready to give up work yet, although the remaining 68 per cent admitted they are remaining at work for now as they have no choice but to carry on earning.
Retirement planning
Vince Smith-Hughes, Prudential's retirement income expert, stated one of the factors most of those who took part in the study have in common is that they are actively planning when they are going to be able to give up their jobs.
"It's likely that many of these people will have accumulated benefits in final salary pension schemes that generate an acceptable income in retirement – perhaps signalling that the golden era of retirement for baby boomers isn't over yet," he said.
Expectations changing
Mr Smith-Hughes added it is "undeniable" that for many people coming up to the time when they had intended to retire, the reality of the situation has turned out to be a lot different to what they had expected it to be like as they prepare to quit working for a living.
This comes shortly after Dr Dianne Bown-Wilson, chief executive of In My Prime, specialists in age diversity and the mature market, pointed out retirement is no longer a standardised process and many older people will look to work part-time initially.
Those who want to free up some funds so they are able to bring their retirement date forward may wish to use the equity release calculator from Key Retirement Solutions to do so.
Posted by Richard Planner
