Going part-time, changing jobs or delaying your retirement plans are some of the accepted norms of the modern ‘pre-tirement’ landscape.
Over a fifth (21%) of people who are planning to retire this year say they don’t feel ready to stop working altogether, a figure that has remained stable since 2011 among those approaching the milestone. In fact, almost a quarter (24%) of people who are scheduled to retire this year have already chosen to delay their plans.
More than half (51%) of the ‘Class of 2015’ would consider working past State Pension age to help improve their financial position. This is the sixth year in a row that the majority of retirees have said that they would actively consider working on to improve their finances in later life.
Reducing the hours they work with their current employer is the preferred option for 31% of this year’s retirees who would consider continuing to work.
Nearly one in eight (12%) would like to look for a part-time job with a new employer while 11% say they’re happy to carry on full-time in their current job.
The decision to continue working past what previous generations would have considered the ‘traditional’ retirement age isn’t always a financial one. For this year’s retirees the most popular reason for considering staying in work, cited by 57%, is to keep mentally and physically fit.
For 39% it’s because they simply enjoy working, while 35% say they would miss interacting with work colleagues. A third (33%) don't like the idea of being at home all the time and 23% say they would miss having a daily routine.
Stan Russell, a 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 and consulting a financial adviser or retirement specialist well in advance of any planned retirement date can help enormously.
“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 pots or just to stay fit, healthy and stimulated.”
