Older workers delaying retirement to release cash from their savings

Figures from Zurich showt that one in four older workers could delay retirement after dipping into their pension pot.

Working beyond planned retirement date just over a quarter (26%) of over-55s in employment said they would be likely to work beyond their planned retirement date after using the pension freedoms to release cash from their savings.

Over a third (35%) of those who said they would put their retirement on hold claimed they would be likely to work for a further five or more years, while a quarter (23%) would prolong their careers by two years.

Far-reaching effect on retirement trends
The pension freedoms could have a far-reaching effect on retirement trends. As many as a quarter of over-55s could delay retirement – some by more than five years – after unlocking cash from their pension. Increasingly, more people may use the reforms to boost their spending power. The freedoms give older employees a chance to access their pension by spending an amount of their savings and staying in work longer to top them up again.

In most cases, individuals who access their pensions will see a reduction in their annual allowance. This means the amount they can save into a pension tax-free will fall from £40,000 to £10,000.

If you are looking for independent financial advice on helping you make sure you plan your retirement out correctly, we at Hutt Professional have financial advisers with many years of experience who would be more than happy to offer you independent pension and retirement advice. If you are located in Leamington Spa or surrounding areas please do not hesitate to contact us.