20th February 2015
Half of people reaching state pension age this year are considering continuing work as ‘pre-tirement’ starts to replace the old notion of retirement.
Research by Prudential, shows if its ‘class of 2015’ – those reaching state pension age this year – one in five are not ready to give up work and 51% would continue working past the state pension age in order to improve their financial position – the sixth year in a row that retirees have said they would do this.
Almost a quarter, 24%, have already chosen to delay their retirement plans.
Working past traditional retirement age is increasingly becoming the norm as many find they need to phase in or delay their retirement for financial reasons or just because they want to, changing the ‘pre-tirement’ landscape.
Reducing the number of hours worked with their current employer is the preferred option for phasing in retirement for 31% of those considering working longer.
One in eight said they would look for a new employer and 11% said they are happy to carry on working full time.
It is not just financial reasons that keep retirees working; 57% said it is to keep physically and mentally fit and for 39% it is because they enjoy work. A third said they do not like the idea of being at home all of the time and 23% said they would miss having a daily routine.
Stan Russell, retirement income expert at Prudential, said: ‘People’s attitudes towards retirement are increasingly optimistic, especially with the new freedom on accessing pension savings that will come into effect this April.
‘The class of 2015 are approaching their later years determined to improve their health, acquire new skills and enjoy themselves. Planning ahead to help achieve a retirement income that will support these ambitions is vital…The old image of everyone giving up work aged 60 or 65 and becoming a pensioner is a thing of the past. People are seeing the opportunity to stay at work full-time or in a period of ‘pre-tirement’ as an attractive one – whether it’s to boost their pension pot of just to stay fit, healthy and stimulated.’
When the class of 2015 do decide to retirement they are planning a busy and healthy retirement. Three in 10 said they will enrol in a course or take up formal education and the 29% plan to do voluntary work.
A quarter said they will join a club or activity group and 43% said they would do more physical activity.