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Almost 50% of Workers Age 50+ Will Work Until Age 77

Written by Gary North on May 2, 2012

This report is a shocker:

If you’re over-50 and looking forward to a wealthy retirement, think again. Chances are you’ll be forced to work for 11 years after reaching your state pension age if you want to keep up a decent standard of living.

The shock warning that millions of workers are going to be too poor to be able to afford to retire came from the Pensions Policy Institute.

The good news is that the report was published in Great Britain. The bad news is that the statistics are very similar to the USA.

The think tank said an income of £11,000 would provide the minimum acceptable standard of living in retirement and could be achieved by 85 per cent of people aged 50 or over who are still working. But only if they continue to work and save until they are eligible for a state pension.

“However, for many people, an income in retirement at this level is unlikely to be considered adequate,” Ms Cleal pointed out. The institute reckons a person would need a retirement income of at least 50 per cent of their gross salary to be comfortable.

In the USA, the Social Security Administration estimates that the retired person will need 70% of his income to live comfortably.

We read: “almost half – 45 per cent – would have to work and save for 11 years or more after receiving their state pension.”

With the state pension age increasing to 66 for both men and women by 2020, that could mean millions being forced to work until they’re 77.

Britain faces what Americans face: long-term unemployment. “There are now 118,000 people aged 50 or older in the UK who have been unemployed for two years or more – a 45 per cent increase in a year.”

Michelle Mitchell, the charity director general of Age UK said: “These figures show that the traditional pattern of retiring and living comfortably on a pension earned over many years of working has broken down.

“Lower annuity returns and other factors mean that more and more people will have to work past their state pension age – and often for many years – if they are to have enough money to live comfortably.

Workers do not see it coming there. They do not see it coming here, either.

Mike Morrison, the head of pensions development at AXA Wealth, said the news should be a wake-up call for all generations. “For those already aged over-50, for whom retirement is not too far off, planning ahead has never been more crucial.

But hardly anyone is planning.

Continue Reading on www.independent.co.uk

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5 thoughts on “Almost 50% of Workers Age 50+ Will Work Until Age 77

  1. Stewart says:

    In the 60's the Russian Premier at that time, Nikita Kruschev, said that communism would eventually take over America without a single shot being fired……..Guess what, "America"….

  2. Stewart says:

    Those who are fortunate enough to have read my statement a few minutes ago I have given you a few minutes to ponder the actual horror of such a statement ( a very true statement at that )…
    Now to continue my thought of honest rationalism, all we need to complete the accuracy of Kruschev's statement ( or threat ) is to continue with the so-called "Leaders" we now have in Washington…or put others in office who are just exactly like them…or finally WAKE UP and think of your country instead of yourselves for a change, and get out of this stupid "gimmie,gimmie,gimmie" soft culture we seem to have fallen into. And for those of you who keep thinking the world and everybody in it owes you, just remember…once things are started being taken away from you, whose to stop them from taking it ALL ?!?!?

  3. Randy G says:

    You're crazy! I got laid off a good job in 1993, because i was OVER 40. Anyone over 50 will be greeters for Walmart.

  4. Perhaps it is time to ask where are these people to get jobs? Every try and find a job at 50 yet alone at 60? Ain't happening.

    The shocker is that at present there are 5 Baby Boomers paying for every SINGLE current receiptant of Social Security. Where else does a $600 a YEARS contribution turn into a $2,000 a MONTH check (my WWII Parents)?

    So since there is BLATANT age discrimination in the workforce I ask where in the Hell does business think it is going to get workers to work and for workers to pay S.S. taxes to us Baby Boomers?

    After all there are only 2 of you for every Baby Boomer. And since we are the majority do you even think the politicians will risk pissing us off if they want re-election?

    So maybe you X and Y geners might want to be in the forefront of ensuing your parents can still get a job OR else you can just accept that your silence will cause your taxes to go up to support us since business by and large commits age discrimination on a daily basis with impunity. After all I have given $240,000 in S.S. taxes myself and with my employers contribution you can double that. And you can GD well bet I want it all back PLUS the interest it should have been invested at and not the legal restriction of US Gov't bonds at the piss poor rate that would have gotten any mutual fund, 401, etc in jail for gross mismanagement of funds.

    Wake up American…the Demographics are NOT there to support the work force without continuing to hire and retain OLD PEOPLE from 40 to 100, especially those over 50. American Business wake up or pay the price of higher taxes and a reduced workforce to pay those taxes.

  5. I turned 50 this year. I expect to work until I die. The prospect doesn't bother me at all.

    I do not understand "retirement". To me such a life would be devoid of of meaningful activity. Travel, garden, enjoy a 2nd childhood? To do so without sufficient money, vulnerable at any time to disease or injury? I'd rather be dead.