The recent abolition of the Default Retirement Age (DRA)is a much needed lifeline to those nearing retirement, according to Richard Collinson Co-Founder and CEO of RetireEasy.co.uk. The newly launched site provides the only comprehensive, online tool that empowers those in or nearing retirement to plan for their financial future.
“We recently commissioned research amongst the 50-70 year olds which established the majority of people in the UK in, or nearing retirement, are afraid they will not have enough money to continue funding their existinglifestyle. Almost two-thirds of the same age groupworry about falling short on a monthly basis or even more frequently. This doesn’t need to be the case aslong as rules are relaxed and people aren’t ‘forced’ into leaving their job before they wish or can afford to.
“Retirement should be about taking it easy and enjoying life. If people need to work longer in order to achieve this,they should be allowed to do so. Today, the average 65-year-old is much fitter and healthier than those a decade ago and employers recognise the contribution they continue to make for those they work for.
“The move to abolish the DRA is a step in the right direction and it is pleasing to see a review of historical rules being applied to modern day life from our Government. This overdue move will come as a lifeline to many and, with the development of tools such as ours on hand to help financial planning in retirement, it is hoped the numbers of those who worry will be reduced.
“It isn’t just our research that highlights the worry and fear felt in retirement. A recent independent report into UK pensionsalso found that almost three quarters of private sector workers will be unable to ‘adequately exist’ when they retire, partially due to a lack of savings. All of these figures surely made for uncomfortable reading to those in power and pressure to change draconian rules will help those willing and able to work in retirement.
“Some have questioned whether the abolition of the DRA will take jobs away from younger workers. While many argue this side,we believe the over 65’shave a right to continue doing their job,aslong as they are capable to do so. As pensions, savings and inflation continue to hit the pockets of those in later life, this continued wage will be a lifeline for thousands. More importantly it could ensure fewer people are left in poverty and ultimately turning to an already struggling state for support.
“RetireEasy aims to free people from the burden of worrying about their retirement income. The interactive and easy-to-use service gives users a holistic view of their future income, factoring in a range of assets such as pension entitlements, investments and savings, in order to figure out how much money they have to live on in retirement. The service is independent, secure, accessible and can be easily updated in response to external factors, such as changes to inflation and interest rates.
“RetireEasy’s study offers insight into the despair felt by those nearing or in retirement is evident from the most frequent word that springs to mind when 50- to 70-year-olds think about their retirement years – ‘worry’. Over half of those polled (56%) think of negative words such as ‘poverty’ or ‘fear’, while only a third (34%) thinks of positive words.
“This should not be the case. If we really want to change the lives of people over 65 in the UK, it means facing up to the fact that they need – and should be allowed to – work to secure their future financial income. Let’s put their life in their hands, so that they can enjoy it all the more.”