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‘Freetirement’ becoming the new norm

14 April 2019

Transitioning into retirement rather than stopping work altogether is growing in popularity among the over 50s, new research has shown.

According to Aegon, half of over 50s prefer a phased approach to retirement. The flexibility afforded to pension savers through the introduction of the pension freedoms four years ago means that older workers can now tailor their retirement to their own individual requirements.

A quarter (26%) of over 50s said they could see themselves continuing to work while collecting their pension, but their motivation was not driven by purely financial reasons. The research found that a desire to stay mentally active, an enjoyment of work and the benefits of social interaction all had a role to play in their decision.

Commenting on the findings, Steven Cameron, pensions director, Aegon, said work life balance has never been so important to older workers.

“Pension freedoms have allowed them to throw off the shackles of a traditional retirement and follow a plan that suits their individual needs. The freedoms have changed the way people think about retirement and are enabling the rise of a more flexible transition into retirement.”

He added: “What we’re hearing loud and clear is that older workers want to be able to continue to live life on their own terms and pension freedoms allows an increasing number to enjoy a new ‘freetirement’ life stage where they can combine reduced working hours with enjoying more leisure time.”