UK - Less than half of workers expect to be able to retire before the age of 70, while 69% of those already aged over 65 do not know when they will be able to start retirement, Barings Asset Management has claimed.

The combined findings from three surveys of 4,729 adults showed those nearing retirement are facing pension shortages resulting from a number of factors, including the current economic downturn.

Barings claimed the number of people expecting to retire by the state pension age of 65 is now just 20%, compared with 40% in 2008, while the number of people expecting to take early retirement between the ages of 50-55 has dropped from 8% to 6% over the last year.

The figures showed 69% of over 65-year-olds are unsure about their retirement date compared to just 3% in 2008, while 46% of people aged between 25-34 also said they do not know when they will stop working.

Barings claimed the findings revealed only 47% of adults expect to retire before the age of 70 - following news of a government review to potentially remove the default retirement age of 65 - compared with 93% just a year earlier.

Barings claimed the research is also a “reality check” for young people to start planning for their retirement as soon as possible, as they can afford to go for a high risk and high reward investment strategy, such as exposure to emerging markets, and can take a long-term view.  

“As so many people are finding now, it is too late to build up a nest egg in your sixties and even fifties. For people further down the line, it is vital to diversify assets, for example using a multi-asset strategy, in order to maintain a sound risk level but also achieve your investment objectives,” warned Marino Valensise, chief investment officer (CIO) at Barings.

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