Expert: It is never too late to save for retirement

Older workers have been told it is never too late for them to save for their retirement.

Older workers approaching retirement age have been advised that it is never too late for them to add funds into savings accounts such as ISAs or fixed rate bonds to provide them with money after they finish work.

That is the opinion of Robin Ellison, partner at Pinsent Masons, who has said that anyone nearing the time when they will finish work to enjoy their retirement must make sure they add cash to their savings funds until the latest stage possible.

Mr Ellison was speaking following the publication of research by Saga last week (February 15th 2011), which revealed that the quality of life for over-50s in the UK is deteriorating as they are suffering form falling income, higher unemployment and rising inflation.

Therefore, it could be a good idea to plan ahead financially and Mr Ellison added that no matter what age an individual is, there is still time to put funds aside for retirement and went on to explain that there are numerous benefits of doing so.

"Despite all the drawbacks and expense overheads, it is virtually never too late to save for retirement. The tax relief on the lump sum at retirement probably makes the exercise worthwhile on its own," he noted.

The study conducted by Saga suggested that people in the age bracket between 50 and 59 are the hardest hit group in terms of savings, with lower socioeconomic groups across all age bands above 50 suffering disproportionately.

As a result, it may be particularly important for those workers in the very final stages of their careers to make sure they are putting sufficient amounts of their income to one side every month, despite the fact that factors such as inflation may mean they are tempted not to do so.