Those of you approaching the age of 65 (the state pension age) could actually boost their pension savings by approximately £46,388 if they delay taking their pension by five years.
This is according to new research from Aegon, revealing that if you decide to continue working past state pension age and contribute to your workplace or personal pension until you reach 70 years old you could increase your monthly income from £457 to £771.
Changes in working patterns over the years has resulted in people becoming happier with the idea of a more flexible and extended transition from working to retirement. A quarter of those of working age expect to carry on working full time for as long as they can, while another quarter say they expect to work past state pension age on a part-time basis.
“For those who are able, continuing to work for a few years more not only keeps a salary coming, it can also produce a substantial uplift in retirement income,” pensions director with Aegon Steven Cameron said.
This comes after a Scottish Widows study revealed that people’s mental health is now being affected by worries over retirement savings and how much they have in the pot.
Some 40 per cent admitted that they believe their health has suffered because of financial worries such as these. Personal relationships have suffered, sleep has been affected and some say that even just thinking about their finances in retirement is enough to make them feel stressed.
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