People under 30 unrealistic about retirement age

People
under 30 want to retire at before they turn 50, a new survey shows.

A
Chartered Institute of Personnel and Development survey shows that employees
approaching retirement age are much more realistic than younger people about
the age at which they expect to retire.

The
survey, Pressure at Work and the Psychological Contract shows:

*
Young people are most ambitious to retire early. More than half of those under
30 would like to retire at age 50 or below

*
People in the NHS are less likely than those in other sectors to want to retire
before 50

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The average age at which people expect to retire is 60.  Men expect to retire between 60 and 61 on
average, with women expecting to leave at just under 60.

*
Older workers are also more satisfied, committed and motivated than younger
ones.  Employees aged 55 and above are twice
as likely as average to be totally satisfied with the existing balance between
their work activities and other aspects of their life

Mike
Emmott, the CIPD’s adviser on employee relations, said: “The Government needs
to make people aware of the need to act sooner rather than later if they are to
enjoy an adequate level of pension. 

"A
substantial number of people have worries about their pensions and most of
these are unlikely to be able to take early retirement in practice. “

The
CIPD said it believes that pensions need to be more flexible so that
individuals have as much choice as possible about when to retire and more
opportunity to combine work and pension.

Other
findings include:

*
Single and divorced people expect to retire at later ages than those who are
married.  So family breakdown and
reluctance to get married will tend to postpone people’s expected retirement
age

*
People for whom work is a central life interest hope to retire later.

*
UK employers will need to work to make work fulfilling and enjoyable if they
are to support government’s efforts to persuade people to stay on

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One in four employees considers their pension provision to be adequate, with
two out of five saying it is somewhat adequate

*
One in three of those aged under 25 believe their pension provision is not at
all adequate. Those aged 55 or above, however, are more confident: 62 per cent
say their pension is either very or at least somewhat adequate.

By Quentin Reade

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