COMMENT
Why Old Age Isn't For The Young

Like many people, I started my working life expecting to end it with a relatively decent retirement income - the basic chunk being provided by the State Pension with my own retirement pot topping it up in order to enjoy a better-than-basic standard of living. And, like many people, I've been poked in the eye with a sharp stick!

In the 25 years since I got my first 'proper' job, successive governments have moved the goalposts on a number of occasions in an effort to meet the financial requirements of an ageing population with a longer life expectancy.

Index-linking of the State Pension has been abolished, women of my age are now not allowed to claim the State Pension until they're 65 when before we could retire at 60 and, soon, in an effort to keep us all working for longer, no-one will be able to draw on their own Personal Pension funds until they're at least 55 (it's currently 50 for most people). Indeed, you'll no doubt be aware that we're now even being encouraged to work till we're 70!

Not surprisingly, people who don't save for their retirement are resigned to working for longer according to a major new report from Scottish Widows. Equally unsurprising is the news that the closer people are to retirement, the more they are likely to be saving. But, the report says, only half the population (55%) is currently on course for an acceptable level of retirement income - the rest aren't saving at all or aren't saving enough.

The usual reason is that people can't afford it but the research reveals that one third of those not saving earn over £30,000 a year. The report seems to imply that those who could and should be saving simply don't want to deprive themselves of the comparatively comfortable lifestyles they currently lead. A 'buy now, pay later' culture, in effect and if that means working for longer later on, so be it.

The trouble is that it's always difficult to interpret these reports and quite often I disagree with the spin that's put on them. Let's take as an example the following findings:

• 33% of Non-Savers are willing to work to the age of 70
• 41% of those under the age of 30 are willing to work beyond 65, if necessary.  This compares to 31% for the 30-50s and suggests that younger workers are more open to the reality of working longer
• 58% of Non-Savers intend to retire at, or after, age 65, compared with only 33% of those 'saving adequately' who it would appear are saving to retire earlier.

It strikes me, reading between the lines, that what these findings really mean are that those under 30 may be 'more open to the reality of working longer' because they don't yet appreciate what that reality actually is. The fact is, for most people the 9-5 daily grind of the working week becomes less appealing the older you get. It's why so many people in their 40s and 50s are desperately saving more in order to retire earlier than 65!

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