More than half (52%) of UK adults say they plan to work at least part-time during their retirement, according to new research on retirement trends by Fidelity International.
The average age people say they expect to retire from their primary job is 66, yet the study reveals an emerging ‘No Desire to Retire’ generation with 45% expecting to work into their 70s, and almost one in ten (9%) into their 80s or beyond.
Longevity continues to improve, with average life expectancy at birth in the UK in 2016 to 2018 at 79.3 years for men and 82.9 years for women.1 A child born today can expect to live more than a decade longer than a child born in the 1950s.
This has had a knock-on effect on working patterns, with recent statistics from the Office of National Statistics (ONS) showing that the proportion of those aged over 70 in full- or part-time employment has doubled in the past decade.
With the Government unlikely to consider any more increases to the state pension age (the last ones were finalised as recently as 2017), today’s ‘no desire to retire’ generation face some significant challenges to ensure their finances are stable for when they retire. However, as Currie points out there’s plenty they can do, whatever their age or level of saving, to maximise their pension saving in preparation: “If you’re contributing to a workplace pension, make sure that you are maximising any help that your employer offers. Many companies will match what you’re paying, up to a certain level, so make the most of it.”
Fidelity International’s latest research also reveals those with the highest household incomes (with an annual income of more than £50,000) are more likely than those on lower incomes to plan to work in their retirement (58% compared with 50%). This suggests that for some, choice plays a part in their decision. This seems particularly true given those higher earners expect to retire from their main job an average of two years earlier. Those with a household income of more than £50,000 expect to retire at 65, while for those earning under £50,000 the retirement age increases to 67.
Similarly, Londoners were far more likely to have plans to continue working into their retirement (64% vs a national average of 52%), despite expecting to ‘retire’ at 65 – earlier than any other part of the country.
Thanks to HR News for the article