20% of over-55s have no pension arrangements

ONE in five people over 55 have made no preparations for their retirement, according to pension experts Mercer.

Fewer than half are confident they will have an adequate income in retirement, while a third do not expect to receive the state pension.

Two out of five said they would like to continue to work part-time after retirement, and one in five of those participating in a pension scheme does not know how it works.

Senior consultant with Mercer Aisling Kennedy said: “People need to plan further ahead for their retirement, and while much has already been done, Government and employers need to do more to raise awareness of the need for retirement provision.”

The research reveals younger people want to retire at an earlier age than those who are getting closer to retirement. Respondents aged between 35 and 44 believe the ideal age for retirement is 57, while those aged 55 to 64 believe it is age 63.

Most of those who plan to work beyond retirement age believe they will have to delay their retirement by four to six years.

“Although people generally recognise that they will not be able to afford to retire at the age they would like to, they are probably still underestimating the age at which retirement will actually be affordable,” said Ms Kennedy.

She said: “Part-time work is a potential way to boost income for those who have passed retirement age but remain in good health.”

The research was conducted among 330 people in paid employment aged between 35 and 65.