Around half of those due to retire this year are considering working past State Pension age, new research by Prudential has revealed. This is apparently the sixth consecutive year where half of people retiring would be happy to keep working if it meant guaranteeing a higher retirement income.
More than a quarter of those planning to delay their retirement would like to reduce their hours and go part time with their current employer, while one in seven would like to continue full time in their current role. An entrepreneurial fifth would try to earn a living from a hobby or start their own business.
Around 8% of those scheduled to retire in 2018 have postponed their plans because they cannot afford to retire. Around 47% of those who cannot afford to retire put this down to the cost of day-to-day living which means their retirement income won't be sufficient.
“The shift to ‘pretirement’ in recent years shows that many people reaching State Pension age aren’t ready to stop working,” commented Stan Russell, a retirement income expert at Prudential. “Reducing hours, earning money from a hobby or changing jobs are all ways to wind down from working life gradually and for many to avoid boredom and maintain an active mind and body.”
“However, not everyone has the luxury of choosing their retirement date due to their financial situation not allowing them to give up work, and others may be forced to stop working for health reasons,” he said. “Saving as much as possible as early possible in their career is the best way for people to ensure they are financially well-prepared for a retirement that starts when they wish, or need, it to.”
“As people are increasingly treating retirement as a gradual process, regular discussions with a financial adviser can help to make sure that your retirement finances are sufficient to allow you as many options as possible,” he added.
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