Half of 2018’s retirees are planning to carry on working

Recent research has found that of the people retiring this year, half plan to work past state pension age, with more than a quarter of those wanting to reduce their hours.

20th July 2018
Investment Services

The research, which was conducted by Prudential, revealed more and more people are leaning towards ‘pretirement’ – scaling down their hours or slowing their retirement plans, instead of stopping work completely. Only 14% of those who plan to work past state retirement age want to continue in their current role on a full-time basis; a quarter would like to do fewer hours or go part time; while a fifth say they would like to start their own business or use a hobby to earn money.

This year’s retirees expect retirement to last an average of 20 years, the survey found, and not being able to afford to retire plays a large part in people choosing to carry on working, as retirement income is not sufficient to cover the cost of day-to-day living.

However, financial reasons are not always swaying people’s decisions. The survey also revealed that more than half of those who are already – or considering – working past state retirement age say they want to keep their mind and body healthy, and 43% do it because they simply enjoy working.

In recent years there has been a big shift towards ‘pretirement’, as people seek ways to wind down gradually from working life, avoid boredom and maintain an active mind and body. Choosing a retirement date is a luxury not everyone has, with financial situations not allowing people to give up work or health reasons forcing people to have to. The only way for people to ensure they are financially well prepared for retirement – whenever it may be – is to save as much as possible, as early as possible.

If you would like to discuss your pension, investments or any other aspect of your wealth management, please get in touch.

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