Brits opting to delay retirement amid debt concerns

Nearly two-fifths (17 per cent) of Brits are delaying their retirement for up to five years due to debt concerns, with a further 12 per cent of savers delaying retirement by up to 10 years, research from Lowell has revealed.

The survey showed that almost a third (31 per cent) of Lowell customers aged over 45 were considering or actively delaying retirement due to worries about debt, and 10 per cent of customers aged 45 and over "worryingly” do not expect to ever be able to retire.

In addition to this, it found that around 21 per cent of Brits were worried that a pension was not enough to live on once retired, with 8 per cent worried they will get into debt after retirement as a result of their pension not being enough to live on.

Around 6 per cent of savers were also worried that they will not be able to support their family from their pension alone.

However, around 6 per cent of savers were unsure how much of their pension they will be paid, which is perhaps unsurprising given 5 per cent of savers wrongly thought that there was no way to check your pension amount.

This was not the only misconception around retirement, as the survey found that around 18 per cent of Brits believed their pension disappears when they die, whilst 13 per cent thought you must apply for a workplace pension, despite employers being required auto-enrol employees over the age of 22.

More than one in ten (12 per cent) savers also thought you could get access to your state pension early, whilst 11 per cent of savers thought you could only retire once you hit 65, and 9 per cent believed you would lose all your pension if your company goes into administration.

Lowell CEO, John Pears, highlighted the research as demonstration of customers' concerns around managing their debt and retirement, as well as the many common misconceptions and worries surrounding retirement across the general public.

In light of this, he emphasised the need for savers to “talk through” their worries, also stressing the importance of the "many credible, impartial and trustworthy sources" available to support anybody struggling financially.

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