Adviser Points of View (20/02/2019) – More than half of over 65s have been forced to retire earlier than they expected, according to research by retirement specialist Just Group.
The analysis found that nearly six in 10, who retired between the ages of 50 to 65-years-old, said this was earlier than they had expected and that they were forced to by events outside their control.
A massive 25% said this was due to illness, 21% said this was due to redundancy, while 10% said this was to become a carer for a family member.
Just Group’s research also showed that 13% of women were forced into retirement to care for a family member, compared to just 6% of men.
Women were also one third more likely to retire early due to illness while just one in five were able to choose to leave the workforce for positive financial reasons, according to the poll, which quizzed around 1,000 UK adults over 65-years-old.
Commenting on the research, Alan Chan, director and chartered financial planner (CFP) at London-based IFS Wealth & Pensions, said: “I have not experienced many clients retiring early due to circumstances outside of their control. For me, it’s more an exception rather than the rule. Clearly the financial implications can be quite serious as not only will it mean they’ll have less set aside for retirement purposes but also if they are suffering from ill-health then their standard of living will be adversely affected.
“In my mind, it quite clearly emphasises the importance of sound financial planning. This means ensuring you have a financial plan for retirement to cater for different scenarios and to also protect your goals and future by having adequate insurance in place to cover for illness or even long-term care costs. Good financial planning could minimise the financial hardship caused by such events.”
Full article link: https://www.adviserpointsofview.com/2019/02/half-of-over-65s-forced-to-retire-early/
