Trend to work beyond retirement growing
13 June 2018
The trend towards Pretirement, where people scale back on work or slow their retirement plans down rather than give them up completely, shows no signs of slowing, according to Prudential’s latest annual research.
The study found that half of those retiring this year are contemplating working beyond state pension age. This marks the sixth consecutive year where half of people retiring would be happy to keep working if it resulted in a higher retirement income.
More than a quarter (26%) of those planning to delay their retirement said they would like to reduce their hours and go part time at their current workplace, while one in seven (14%) would like to continue full time in their current role. One fifth (19%) expressed a desire to try and earn a living from a hobby or starting their own business.
The Class of 2018 research also revealed that people expect their retirement to last an average of 20 years.
Around one in 12 (8%) of those set to retire in 2018 have postponed their plans because they cannot afford to retire. Nearly half (47%) of those who cannot afford to retire attributed it to the cost of day-to-day living. However, over half (54%) of those who are already or are considering working past their state pension age said it is to keep their mind and body active and healthy. Over two fifths (43%) admitted they simply enjoy working, while just over one in four (26%) don’t like the idea of being at home all the time.
Stan Russell, a retirement income expert at Prudential, said: “The shift to ‘pretirement’ in recent years shows that many people reaching state pension age aren’t ready to stop working. Reducing hours, earning money from a hobby or changing jobs are all ways to wind down from working life gradually and for many to avoid boredom and maintain an active mind and body.
“However, not everyone has the luxury of choosing their retirement date due to their financial situation not allowing them to give up work and others may be forced to stop working for health reasons. Saving as much as possible as early possible in their career is the best way for people to ensure they are financially well-prepared for a retirement that starts when they wish, or need, it to.”
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