More than two in five (44%) of 55-64 year olds plan to move into semi-retirement before the age of 65, new research from Aviva has shown.
According to Aviva’s ‘Age of Ambiguity’ report, more than nine in ten (91%) people described themselves as “much happier” since reducing their working hours, while more than half (55%) of workers said they like the idea of continuing to work through retirement.
Aviva said that recent changes in government policy, including the planned increase in the state pension age to 67 from 2028, has prompted people across all age groups to re-evaluate their plans for work and later life. Almost three in five (59%) 18-34 year olds plan to semi-retire before the age of 65, rising to 61% among those aged 35-44.
Recent data from the Office for National Statistics found that 48,000 over-50s have recently returned to the workplace, as Chancellor Jeremy Hunt urges people who have already retired or are considering retirement to think about staying in work to help solve the UK’s labour shortage.
The desire to retire early is often driven by individuals wanting to take advantage of more freedom while still being physically fit and well enough to enjoy it. Semi-retirement can offer a mutually beneficial solution for employers and employees, as companies benefit from retaining the expertise and knowledge of skilled staff within the workforce, and workers can make choices about maintaining a healthy lifestyle and income in retirement.
Michele Golunska, managing director for Wealth and Advice at Aviva, said: “In a climate where longer working lives are becoming the norm, semi-retirement is a chance to experience the ‘best of both’ which can benefit both employees and employers.
“Retaining connection to their workplace is an appealing option for many people who are still working towards their financial goals or are simply not ready to stop working. It also provides an opportunity for employers to continue to harness the knowledge and expertise of more experienced staff for longer.”
With the idea of retirement varying from person to person, Aviva said it’s important to encourage conversations about retirement long before it happens.
Golunska added: “As people live longer, investing time in ourselves and considering every option available in later life is the best way to ensure we have the retirement we aspire to. Starting to think and plan further ahead is a small step that can make a big, positive difference in the long-term.”
