Nearly 1 in 3 pensions left untouched by people in their 60s

Almost a third (32 per cent) of people in their 60s and 16 per cent of over 70s have not touched their pension, according to LV= research.

Nearly half (48 per cent) of those in their 60s who had not accessed their pension pot, and 24 per cent of the over 70s, said it was because they were still working.

More than half (51 per cent) of all over 50s who had yet to withdraw from their pension said it was because they were still working.

Just under half (47 per cent) of the over 50s with untouched pots said they relied on cash savings for an income, 35 per cent were living off their spouse/partner’s income, 22 per cent lived on their state pension and 12 per cent relied on income from property investments.

A quarter (25 per cent) of people in their 60s who had not withdrawn from their pension simply said it was because they wanted it to last as long as possible.

LV= managing director of savings and retirement, Clive Bolton, said: “It is encouraging to see that people are working longer as the barriers to working past retirement age fall away. This trend for staggered retirements is good news because continuing to work offers many financial and health benefits.

“It is often taken for granted but continued good health is one of the best financial assets people can have. The benefits of working – such as remaining physically active and continued social interaction – can make a big difference to people’s mental wellbeing and overall health in retirement.”

Bolton added that it was still important for people not to “miss out on the ability to generate growth above inflation for when they are ready to start to draw their pension”, concluding that “it’s a good idea to seek help from a financial adviser so that people can enjoy the retirement they want”.

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