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UK workers more likely to transition into retirement

9 September 2020

retirement plan

UK workers have a greater desire to transition into retirement than their European counterparts, but the effects of the Covid-19 pandemic could pose a hurdle, warns Aegon.

According to the retirement specialist’s global survey, less than a third (30%) of UK workers want to immediately stop working upon retirement age, compared to 57% of workers in Spain, 49% in France and 40% in Germany.

By far the biggest reason for workers viewing retirement as a transition rather than a fixed date is the desire to keep active. However, the impact of Covid-19 could result in higher numbers of people leaving employment earlier than anticipated going forward, with 47% of UK retirees admitting to leaving their job sooner than they had planned, largely due to job loss and ill health.

While the figures highlight the importance of having a back-up plan in place to ensure financial security, only 30% of workers in the UK have considered their course of action in the event that they are unable to continue working until their desired retirement age, says Aegon.

Steven Cameron, pensions director, Aegon, comments: “Increased life expectancy, greater flexibility and a desire to remain active and mentally astute are all factors driving a desire among UK workers to choose both the timing and the way in which they retire.

“However, people’s plans and their choice of how and when they retire is susceptible to a number of factors, including their own health, the need to care for others and unfortunately, ageism in the workplace. Unfortunately, it may be for many, what they’d hoped would be a gradual transition could turn into a sudden departure from work as the impact of coronavirus proves to be an employment game changer.

“Anyone whose retirement plans have been disrupted by an unexpected loss of employment in later life should consider seeking financial advice to explore their options.”

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