One in three approaching retirement age set to change their plans

ALMOST one in three people approaching retirement is considering changing financial plans due to current economic uncertainty, a survey has found.

According to financial service firm Prudential, more than 55,000 people aged between 55 and 64 are considering pushing back their retirement, while others are reconsidering financial plans following the vote last month to leave the EU.

The research, carried out during the week after the referendum vote, also found that across different age groups generally, one in five (20 per cent) people think they will need to change their retirement planning and of these, more than half (51 per cent) think they may retire later.

Vince Smith-Hughes, Prudential’s saving and retirement expert, said some people who had been wondering whether or not to retire may have been nudged towards working for a while longer.

He added that low interest rates will have affected people’s savings, while concerns around the property market may also have had an impact on their plans.

He said: “Perhaps people are relying on their own property or buy-to-let or property funds and they are thinking that is one of the things that means they are going to have to delay their retirement.”

Recent falls in annuity rates amid market volatility may also be partly behind some people’s decisions.

When many people retire, they use their pension pot to buy an annuity, which can give a fixed income for the rest of their retirement. But the pension freedoms introduced last year mean retirees are no longer required to buy an annuity and have range of options.

The survey came as it was also revealed one in 10 people who had planned a big spending decision in the next six months has decided to put it off. Pollsters Ipsos Mori said people who had hoped to buy a car, move house or spend money on a holiday have decided to either delay or abandon their plans.

More than a third of people in work also admitted to being concerned about job prospects, and almost 40 per cent are worried about being able to pay the bills.

However, the poll found that more than half of people do not expect their personal financial situation to change in the next six months. About 57 per cent of those asked do not think their personal situation will change, 18 per cent think it will be stronger in six months, but around a quarter think things will get worse.

Ben Page, chief executive of Ipsos Mori, said: “The impact of the Brexit vote on consumer confidence is undeniable – we’re seeing the lowest level of economic optimism in four years, though we are not in 2008 territory yet.”