The concept of a traditional retirement is on its way out, as more adults shun the idea of fully stopping work at a particular age, new research by SmartSave has revealed.
More than two fifths (42%) of those surveyed expect to retire after the current state pension age of 66. Of those, 73% said they believe the concept of stopping work at a particular age is becoming less common, while 65% said they envisage doing some part-time or freelance work in ‘retirement.’
According to the digital bank, there are several factors contributing to people’s changing attitudes towards retirement. A third (34%) of those planning to retire at 67 or later said advances in technology, remote working and the gig economy were blurring the lines between working life and retirement.
Almost half (48%) of those predicting a late retirement said they want to keep working beyond the state pension age, while 57% would do so to fund a better lifestyle in later life.
SmartSave said that more generally, 54% of people agree with the statement that the ability to “fully retire” is increasingly becoming a privilege that only the wealthy can afford.
Andy Mielczarek, founder of SmartSave, said: “The cost-of-living crisis has undoubtedly affected people’s ability to save and prepare for retirement. But there’s an important and often-overlooked question we need to ask: do the traditional notions of retirement still hold up.
“The research highlights that for millions of UK employees, the way they think about retirement is evolving. For many, it is no longer black and white; part-time work in later life will play a big part in how they transition into retirement, and this is not always a financial necessity, but the survey shows that there are a lot of people who want to keep working.”
Mielczarek said there needs to be greater recognition of the shift in attitudes.
“The narrative of people being forced to work past retirement age, rather than doing so by choice, is far too simplistic. Instead, there ought to be a greater focus on education, support and banking products that cater to changing perceptions towards retirement and long-term financial management,” he added.
