22/06/17Over 50s plan to keep working past retirement age but not for the reason you’d expect…
New research from Retirement Advantage suggests that two in five over 50s are planning to work past the State Pension age.
Whilst most young employed people feel as though they will never be able to stop working, many of those approaching retirement age are concerned not by financial instability, but social issues, such as:
- The prospect of being bored
- Missing out on social interactions
- Lacking a purpose
With the State Pension age planned to rise in the near future, it seems that many of the people being forced to keep working are actually more than happy to do so.
How many people are already working past 65?
The Office for National Statistics (ONS) figures show that between May and July of 2016, there were 1.19 million people aged over 65 in employment. This makes up 10.4% of that demographic, and is the highest number since records began in 1992. In 2006, 6.6% of over 65s were working, and in 1992 that number lay at just 5.5%.
The Pensions Technical Director at Retirement Advantage, Andrew Tully, said: “We hear a lot about the productivity problem in the UK, which can give the impression that we Brits don’t like working, but this research proves that is not the case. Lots of over 50s enjoy their jobs, and are keen to continue working for as long as they can simply because they believe they’d be bored without it.
Why are people choosing to work longer?
In a survey of 1,013 people aged over 50 by Retirement Advantage, 39% said that they were considering working beyond the State Pension age, which is currently 65 but planned to rise to 67 by 2028. When asked what their reasons were for contemplating working past retirement age, the most popular answers were:
- They simply like working (54%)
- It provides a sense of purpose (53%)
- To avoid boredom (52%)
- To ease into retirement gradually (42%)
Needing extra money ranked quite low, with only 41% of people giving it as a reason for working longer. This is not to say that financial stability isn’t an issue for the majority of those approaching retirement, as 41% is still a substantial proportion of people.
Mr Tully commented: “It’s important that businesses recognise the value of older employees’ expertise and experience, and support them to stay on. However, for some, remaining in work is not a desire but a necessity, as concerns about inflation and the rising cost of living increase anxiety over how they will pay the bills. And, of course, health issues mean that not everybody approaching retirement will be able to stay in their job. These people need a robust financial plan that will provide the certainty that they will be able to pay the bills throughout retirement, but flexibility to cope with whatever the future might throw up.”
If you have any questions regarding your own retirement, then seeking professional advice could ease any doubts you may have.