But have you made the necessary arrangements?
It is estimated that there are nearly two and half million of us, which equates to 7 per cent of the adult population who envisage retiring before we reach the age of 50, even though many of us have made no retirement provision whatsoever.

 

Baring Asset Management, a global investment management firm, identified in a study that a potential 2.4m UK adults are holding out for such an early retirement, but in a stark contrast, the number of people planning on working until they are at least 76 is just half that, at 1.2m.

A further 4 per cent of those planning to retire before the age of 50, claim that they are relying on their property as an income in retirement, despite the current news and concerns surrounding the sector.

Nationwide recently revealed that the average cost of a home was now almost 15 per cent lower than it was a year ago, which is the steepest drop since records began during the recession of 1991.

Commenting on the findings, Marino Valensise, chief investment officer, at Barings, says: ‘These figures reveal a worrying trend of UK adults assuming that they will be in a position to retire without having made the necessary arrangements for funding that retirement.

‘It is absolutely vital that we all start considering how best to build our pension fund from the day we start working. Unless we make the correct provisions now, that target age for retirement will slip further and further away.’

The research also found that on average, both men and women now expect to have to work until the age of 63 compared to 12 months earlier, when the same survey, showed the average expected age of retirement was 62.

The credit crunch and subsequent financial turmoil has caused high levels of economic disillusion among young people when it comes to funding their retirement dreams.

Those aged between 18 and 24 expect to retire on average two years later than they did last year
at the age of 63, compared with an expected retirement age of 61 last year.

Some 40 per cent of non-retired Britons, or 14.1m people, expect to be able to retire between 61 and
65 years of age while 4m (13 per cent) expect to be able to retire before they reach 56 and almost 11m, at 31 per cent, are planning to retire between 56 and 60.

But 15 per cent of Britons, at 5.1m expect to have to work much longer than this, though, as they do not plan to retire until 66 or later.

Around 19 per cent of those who are not yet retired expect to be able to retire with a personal or money purchase pension while 34 per cent are relying on their final salary scheme to see them through retirement.