Over 50s forced to raid their retirement savings

It is becoming harder than ever for over 50s in the UK to save money towards their retirement, and retirements are being pushed back too.

Around 28 per cent of people nearing supposed retirement will in fact have to continue to work because of the economic situation, according to research.

As well as those people delaying retirement, 21 per cent have had to raid their savings over the past 12 months, life insurer Liverpool Victoria (LV) said. On average the amount people have been saving for retirement has been cut by £324 a month – some £3,800 a year.

That represents a large increase in the amount people approaching retirement cut from their savings the previous year, which was £137 a month.

LV’s research showed that people in their 50s and 60s were having to take money from their long-term savings pot in order to cope with current financial requirements.

The insurer’s research showed that women were being hit the hardest, with 23 per cent raiding their retirement savings over the last year, with an average cut of £4,464.

In the over 50s age bracket, just over a third of people said they were looking for a significant economic recovery in the country if they were going to be comfortable in their retirement years; this figure rose to over half in the over 60s age group for people who were still at work.

When asked what they thought of having to work more years than previously thought, some 47 per cent said they were disappointed and 18 per cent described themselves as being angry.

Head of pensions at Liverpool Victoria, Ray Chinn, said: “Britain's over-50s have already seen their pension pots damaged by the economic crisis, and now many appear to be diverting still more money away from retirement saving to deal with immediate pressures.”

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