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1 in 5 over-50s to change their retirement plans

26 July 2018

The pension freedoms has prompted one in 5 over-50s to change their retirement plans, spurred on by the flexibility to access their pension at the age of 55.

In research published by Retirement Advantage, the firm described the behaviour as “demob fever”, with official stats showing most consumers (72%) who accessed their pot did so before the age of 65.

Of the one in 5 who have changed their plans, nearly half (44%) are planning to bring forward their retirement and retire early. However, 28% of respondents said they are now planning to retire later.

The findings also showed nearly a third (29%) of people changing their plans are looking to work part-time in retirement. However, the data highlighted a stark difference between men and women who have changed their plans, with 41% of women expecting to work part-time in retirement compared to just 20% of men.

Andrew Tully, pensions technical director, Retirement Advantage, said: “The increased awareness around pension flexibility has certainly made people sit up and rethink their retirement, with a significant number changing their plans as a result.

‘Official data shows most pensions are now accessed before state pension age, which demonstrates what a game changer the pension freedoms have been. The regulator has recognised the need to alert people to the fact that your 55th birthday should not necessarily be a starting signal to begin accessing your pension.”

 

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