Advice firms will need to factor in the new ‘life after 50’, with clients in their 50s expecting a “radically different life” to previous generations, says Aegon.
Research by the pension provider found that only 27% of people currently in employment expect a ‘hard stop’ retirement.
With people on average living longer, life after 50 is more likely to be ‘multi-staged’ than follow the traditional convention of education, work and retirement and advisers will need to consider that those entering their ‘second 50’ today will have vastly different prospects from those of previous generations.
Aegon’s findings reveal that for most, the main reasons for working into later life are positive, including an enjoyment of working life (57%) and the desire to keep a sharp mind (54%).
Steven Cameron, pensions director at Aegon, said: “As we see record numbers of people in the UK celebrating their 100th birthday, we want to start a conversation about how varied people’s second 50 years may be and to help people better understand and navigate them.
“The second 50 is a new phase of life that is vastly different to the prospects our parents and grandparents had when they reached age 50. There are millions of combinations of circumstances and situations that people over 50 may find themselves living through at various times and in different orders, meaning everyone’s second 50 is truly unique.”
Cameron said advice firms must not look to what has gone before to know how to manage it and must reconsider their approach to work, including how clients transition from work into retirement; wealth, family, health and wellbeing.
The report finds that more than half (53%) of people want to spend more time with loved ones once they hit 50, while 45% plan to travel and 33% expect to pursue new hobbies.
However, those aged between 50 and 59 expect to spend almost a fifth (17%) of their later life in ill health but only a quarter (25%) have considered future social care expenses in their retirement savings plans.
Cameron said: “We want to explore the second 50 not just with individuals but with employers, the financial services industry and government, to create a landscape that is truly fit for purpose for everyone’s life after 50.
“Whether it’s employment and pension law or the state pension, government has the responsibility to support and the power to shape people’s second 50. We’d like to see the Government offer more flexibility around when people can access their State Pension.”
Cameron added: “In addition, employers can play a vital part in life after 50 by offering flexible working, training, and support at all ages, and by harnessing the skills and expertise of those who wish to continue working for longer. Meanwhile, workplace pensions can help build the financial support needed by employees in later life.”
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