Most over-55s have no pension plan
ONLY one out of four people aged 55 plus has made proper preparations for retirement, a new study has found.
And more than 20pc of those aged 55 or over admit they have not made any preparations for their retirement, according to research published by Mercer.
The study found that fewer than half are confident that they will have an adequate income during retirement, while one third do not expect to receive the state pension.
Even many of those who do have a pension do not understand how they work, the research found.
More than 40pc of respondents would like to continue to work part-time after retiring and one in five of those participating in a pension scheme do not know how it works.
Aisling Kennedy, of Mercer, warned: "Given the lack of preparation by the majority, even of people close to retirement age, many of the expectations that they have for retirement may not be realised.
"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 current economic downturn has also had an impact on people's retirement planning, with 25pc of those interviewed indicating that the current recession will result in them having to retire later than planned.
Most of these people believe that 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, especially considering that the current proposals allow for increasing the qualification age for state pensions from 65 to 66 in 2014, 67 in 2021 and 68 in 2028," Ms Kennedy added.
The survey, carried out by Millward Brown Lansdowne, also revealed that many people would like to work on after retirement age.
More than four out of 10 of respondents want to continue to work on a part-time or flexible basis after they retire. A third would also like to work on a part-time or flexible basis during the years approaching retirement age.