Record numbers can’t afford to retire at 65

Fears over a pensions crisis mean many Scots have to keep working

RECORD numbers of Scots are giving up on retirement as they cannot afford to stop working.

Nearly 85,000 are working beyond the age of 65 – with one in four citing financial reasons.

The figures have sparked fears of a growing pensions crisis as people struggle to save enough during their working lives to see them through retirement.

Campaigners have now called for more action to support older workers as Scottish Government figures show their number has nearly doubled in a decade.

Laws have been introduced which automatically see employees enrolled in company pension schemes.

More than half of over-65 workers said they had opted against retiring because they were ‘not ready to stop working’. But one in four cited financial reasons.

Age Scotland chief executive Brian Sloan said: ‘As we live longer and the state pension age rises, working longer is becoming part of life. Many Scots don’t feel ready to retire at 65 and choose to continue because they enjoy the social side or want to share their skills.

‘But it’s worrying an increasing number of older Scots feel they have to continue working due to money concerns. Our research suggests this is a growing problem, with 43 per cent of those aged 40 to 64 saying they won’t be able to afford to retire at 65.

‘There’s a clear need for more guidance to help people plan ahead for their retirement. We’d like to see all Scots offered a “career MOT” at 50 to enable them to make informed choices about training, pension provision and future career options.’

The Government’s new Regional Employment Patterns in Scotland report shows 84,700 people aged 65 and over were in employment last year, almost twice as many as ten years ago. The employment rate for those aged 65 and over increased from 5.7 per cent in 2007 to 8.5 per cent in 2017.

When those aged 65-plus were asked why they were still working, 56 per cent said they were ‘not ready to stop work’; 13 per cent said they needed money to pay for essential items; 9 per cent said their skills or experience were required by their employer; and 6 per cent cited the need to pay for desirable items and boost their pension pot.

The report also showed jobs growth in Scotland had lagged behind every UK region since the SNP came to power, having risen by only 2.7 per cent since 2007.

Scottish Tory economy spokesman Dean Lockhart said: ‘The SNP needs to admit the full picture when it comes to unemployment in Scotland. The fact is the number of people who have never worked in Scotland has increased by almost 20 per cent since the SNP came to power in 2007.

‘The SNP is desperate to cover up this worrying trend. The SNP’s failure to grow Scotland’s economy is an obvious contributor to the increase in economically inactive people. It’s time for the SNP to stop its constitutional obsession and get back to the day job.’

Employability and Training Minister Jamie Hepburn said: ‘The rising employment rate among those aged 65 and over shows employers are increasingly recognising the skills and experience older workers can offer. We are supporting people in work, or who want to keep working after they have reached state pension age, by developing a labour market that is open, inclusive and offers good quality and rewarding jobs for everyone.

‘We are determined to do all we can within our current powers to enable older people to remain in employment as long as they wish.

‘That is why we will be funding projects to address long standing barriers in the labour market faced by older workers.’

According to official figures, four in ten people in the UK underestimate what they need to set aside for their pension.

‘A clear need for more guidance’