As a result of a poll of 2,400 people in the UK - conducted by investment company Fidelity International - it was found that despite the fact that most people expect to retire at an average age of 66 years, 45 per cent expected to work past the age of 70 and nearly 9 per cent planned to keep working into their 80’s.
Maike Currie - Director for workplace investing at Fidelity International - said:
“With 60 now widely seen as ‘the new 40’, today’s so-called retirees are healthier, living longer, and retiring at different ages. So, it is unsurprising that people have no desire to retire and are defying traditional expectations. The economic power of those who were once considered ‘past it’ can now be felt everywhere. This will transform the jobs market as more people work into their late 60s or even early 70s and they will have a growing influence on consumer spending as pension reforms allow them to cash in their lifetime savings and spend the money as they wish.”
As over half of adults plan to carry on working in their retirement, experts highlight the importance of employers giving workers control over how they choose to retire.
Jill Miller - Diversity and Inclusion Adviser at the CIPD - said:
“Giving people choice about how they choose to work is important. Many people no longer want cliff-edge retirement where you just stop working one day. Instead, many are choosing phased retirement.”
She added that as - according to government findings - the employment rate for those aged between 50 and 64 has grown from 55 per cent to 70 per cent over the past 30 years, so employers must ensure they’re prepared for this ageing workforce, saying:
“With an ageing population, more people are working longer and employers need to ensure their people management approach fits the needs of a multi-generational workforce. Older workers bring with them a wealth of both job and life experience, but employers need to make people want to stay. For example, can people work flexibly to balance caring responsibilities with work?”
The research by Fidelity International also shows that those with the highest household incomes - more than £50,000 - are more likely to plan to work in their retirement than those on lower incomes. People with a household income of more than £50,000 expect to retire at 65 - whilst for those earning under £50,000 the retirement age increases to 67 years.
As the government is unlikely to consider any further increases to the state pension age, people may face some significant challenges to ensure their finances are stable for when they retire.
Steve Webb - former Pensions Minister and Director of Policy at Royal London - stated that those who are better off might find it easier to secure a part-time role; change to being self-employed or become a member of a board in later life. He added:
“For those who are in good health and who enjoy what they do, carrying on working, perhaps with reduced hours, can be fulfilling and rewarding. But it’s important not to forget the large numbers of people who expect to work on not because they want to, but because they have to. A growing number of people will reach retirement without enough pension saving for a comfortable retirement and they may have to go on working long past the point when they would have wanted to stop.”
