Retirement plans 'in confusion'

Research by the Institute for Employment Studies showed employees in their early 50s seem to have done little in the way of forward planning.

A study of over 50 employees found the recession altered the retirement landscape "significantly" as redundancies and recruitment freezes led to higher levels of unemployment among the older workers.

The report said individuals may no longer be in the driving seat of their later life and retirement planning.

"Not only might older workers potentially be an easy target for companies looking to cut costs, but those losing their jobs cannot afford to take the early retirement as they might have done in financially healthier times," said the report.

Marie Strebler, of the Institute for Employment Studies, said: "Employers seem to be stuck in reactive mode. They provide retirement support, however they are failing to encourage people to stay, treating requests on a case-by-case basis and thus missing opportunities to retain much needed and valuable skills.

"Older workers are an asset, but a tremendous shift in deep-seated stereotypical attitudes to ageing and work is required if employers want to foster a culture where early retirement and prolonged working lives co-exist."