The trend for early retirement looks
set to end, researchers say, and people will have to work for longer to fund
their retirement.
Professor Richard Blundell, of the
Institute for Fiscal Studies, says increased life expectancy and the decline of
generous company and state pensions look set to stop people retiring in their
50s.
Last year, the number of men aged
over 60 who were still working fell to 30 per cent from a high of 70 per cent
in the 1960s.
But Blundell warns that this trend
is unlikely to continue.
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"Recent
changes to public and private pension schemes are swiftly reducing incentives
for the vast majority of men and women to retire early," he says.
Average life expectancy has
increased by more than 10 years since the 1950s. Men retiring at 65 can now
expect to live for another 15 years, while women are likely to live for another
20 years.
