15th August 2014
Living longer, saving less and the end of guaranteed workplace pensions has meant more retirees are becoming part-time pensioners.
Research by insurer LV= shows that just over a third, 38%, of UK adults who are at state pension age are fully retired.
LV= said people are taking a more gradual approach to retirement, slowly cutting back their hours and reducing the days they work to phase in retirement rather than leave the workplace on a set date.
Those in employment in their 60s are working an average of 24 hours a week and 35% want to phase their retirement which could lead to them working part-time or taking consulting or voluntary roles.
Money is a large driver for staying on at work past retirement age, with half saying they are continuing working to boost their retirement income, but 52% also said they enjoy working and 46% said they are too young to stop working.
In fact, three-quarters of those aged 60-plus said they felt younger than they are.
Older people are also using their retirement to start their own businesses. Over a quarter, 28%, of people who are working in their 60s, 70s and even 80s, run their own business and of these older entrepreneurs, one in five started their business in their 60s.
A third of those in semi-retirement said they have switched careers to try something new.
There is also a trend for ‘unretiring’ in those aged over-60, with many returning to work after retirement. One in six of those in their 60s have done this – equating to one million workers.
Of those unretiring, 49% said they needed the money but 39% said they were bored.
Richard Rowney, managing director of life and pensions at LV=, said: ‘For man people, working for longer is a positive choice. Many people in their 60s and 70s enjoy their jobs and are keen to remain active in later life.
‘However, we cannot ignore that for others, their financial situation means they have to continue working – or even go back to work after retiring – because they simply cannot afford to stop. With the nature of retirement changing it is important that people have the income flexibility they need in later life.’