7th July 2014
One in 10 people do not want to stop working as those currently of retirement age, are looking to adopt a more flexible approach to work in older age new research has found.
An analysis from retirement specialist MGM Advantage found that 10% of people people ideally never want to retire, with this figure highest, at 16%, or one in six, for those aged 65 plus.
The research also found that less than one in five adults, at 18%, ideally want to retire below the age of 60.
Andrew Tully, pensions technical director at MGM Advantage says: “Our research shows that we should perhaps look to retire the word ‘retirement’. People today not only expect to be working longer, they want to, with a significant number hoping never to stop work at all. We expect to see a lot more people working way into their 70s in the future.”
But this trend will have a massive impact on UK employment where presently well over 600,000 people reach the age of 65 each year, but if 10% of them, or 60,000, decide to continue in work in future years then the workforce will age considerably.
“It’s clear that there’s going to need to be a lot more freedom and flexibility in the pensions market to accommodate people who don’t want to stop working, but still want to be able to access their pension savings without getting hit by a big tax bill,” adds Tully.
However, the research also shows that many feel they will be compelled by their circumstances to retire after they would ideally like to. Although more than half at 56% of people ideally want to retire before the age of 65, almost 70% felt they would actually retire aged 65 or more – or indeed that they never would.
Separate finding shows that 33% of non-retirees’ main priority concerning their retirement is being able to afford to retire when they want to.
Tully says: ‘Clearly people are feeling the pinch, and worried about being able to retire when they’d like to. In some senses, this is to be encouraged – people need to take an honest and realistic look at their finances before making the decision to retire. From April, people will be able to access to all of their savings at retirement, so they will need to consider the long-term sustainable income they may need through their retirement, as well as the ability to take taxed lump sums as and when they want.’