New research has indicated that working past the state pension age will be a consideration for over half of those planning to retire during 2017.
According to Prudential, people are instead choosing to reduce the amount of work they do rather than ceasing completely. Calling this the “new retirement reality”, this is fifth consecutive year that over 50% of would-be retirees are thinking about continuing work.
Figures have also indicated that this may be for reasons beyond boosting income. The data indicated that just over a quarter (26%) of those considering working past State Pension age don’t like the idea of living at home for long periods post retirement.
A further third state they don’t feel yet ready to retire, whilst 30% stated that they want to increase their savings before they stop work completely.
Whilst worries about income in later life is a concern for those approaching retirement, financial issues are similarly a problem for those who aren’t retiring this year – approximately one in 12. Over half of this group stated that they need to save more into their pensions.
Commenting on the figures was Stan Russell. The retirement expert at Prudential highlighted the changing face of retirement and the various reasons why people continue to work beyond the State Pension age.
“Our research has shown that a period of ‘pretirement’, where people choose to delay their retirement plans, change jobs, earn a living from a hobby, or go part-time, instead of giving up work altogether, has become the new norm for retirees in recent times. However not everyone is lucky enough to be able to make the choice – many will find themselves having to work on for financial reasons while others may be forced to give up work for health reasons.
“Saving as much as possible as early as possible in their working life is the best way for many people to ensure they have control over their financial futures, and are well-prepared for a comfortable retirement that can begin when they want it to.”
