The traditional ‘hard stop’ retirement may be a thing of the past, as later life options become more varied, new research from Aegon has suggested.
According to the retirement specialist’s Second 50 campaign, just 16% of UK adults expect to stop work completely and enter full retirement.
In contrast, three in 10 (30%) anticipate continuing to work in some capacity, while 19% expect to phase work down before eventually stopping work altogether. One in 10 (10%) said they would consider moving into a completely new role.
However, 23% of respondents admitted they do not yet know what their transition into retirement will look like.
Aegon’s research unveiled a wealth of reasons driving people’s desire to continue working beyond the traditional retirement age. The most common reason was wanting to keep their brain active (41%), followed by maintaining a good work-life balance (35%), supporting their physical and mental health (30%) and enjoying work and working life (24%).
Nearly a quarter (23%) also said they would need to continue working because they have not saved enough, while 20% have concerns about whether their retirement income will meet their needs and 17% expect their retirement income to be lower than they had anticipated.
Additionally, Aegon said its findings show confidence and certainty about later life are far from universal. While 53% of UK adults say they are confident they will be able to maintain a lifestyle they consider comfortable throughout retirement, 39% are not confident and 9% do not know.
Kate Smith, head of pensions at Aegon UK, said: “Life after 50 looks very different compared with previous generations, and for many it can feel like uncharted territory. Retirement is no longer viewed as a single moment in time, instead, people are increasingly thinking about how work can fit alongside other priorities and aspirations in later life.
“What’s particularly interesting is that many people are considering a range of possibilities, from reducing their hours to changing roles or continuing to work in a way that suits them, sometimes to enable them to work longer. For many, this is about choice, flexibility and staying engaged, rather than simply reaching a fixed end point.
“While it’s encouraging that more than half of adults feel confident about their future, our findings show that confidence isn’t shared equally, particularly among women. Helping more people feel informed and supported to make decisions about later life will be an important part of building that confidence.”
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