A recent survey conducted by Standard Life - part of Phoenix Group who are the largest long-term savings and retirement business in the UK - has revealed that older workers are increasingly planning to work beyond the state pension age in search of financial security in retirement. The survey found that workers aged 45-64 expect to retire, on average, at age 68, two years later than the current state pension age.

This trend of working longer has been growing in recent years as people are living longer and retiring with less savings than they need to sustain their lifestyle. The traditional notion of retiring at 65 is becoming outdated, as many individuals now want to work for longer in order to accumulate more savings and secure their financial future.

There are a number of factors driving this trend. One is the increasing cost of living, particularly in urban areas where housing, food and other essentials can be expensive and another is possibly that the responsibility for funding retirement has now shifted to individuals. Older workers may feel that they need to work longer in order to maintain their standard of living, particularly if they have not been able to save enough for retirement.

Another factor is the changing nature of work itself. Many older workers are choosing to work part-time or on a freelance basis, which can provide greater flexibility and control over their working lives. This can be particularly attractive for those who want to reduce their hours but still earn a living.

The survey also found that older workers were more likely to seek financial advice in order to plan for their retirement. This is a positive sign, as it suggests that people are becoming more aware of the need to plan ahead and take control of their financial future but is in contrast to current retirees who on average stopped work at the age of 61 and of whom only 18% based their decision to retire on when they felt financially secure.

Dean Butler, Managing Director for Customer at Standard Life, commented:

“People are expecting to retire later than their predecessors, allowing further time to build up their financial security to last throughout their retirement. In contrast, current retirees were more likely to base their decision to retire around their health and being ready to stop working, with financial security less of an influence. Of course, it’s yet to be seen whether the expectation of a later retirement will become a reality, but this does illustrate a real shift in mindset for people considering their plans.”