We'll work until we drop - because we want to

Updated
Store Clerk Checking Receipts
Store Clerk Checking Receipts



More people in the UK are working beyond the traditional retirement age than ever before - and the trend is set to continue. Since the compulsory retirement age of 65 was axed in 2011, more than a million people aged over 65 have ended up working in retirement, and half of those reaching state pension age this year plan to carry on working. Traditionally this has been a situation forced on people who don't have enough pension savings to give up work entirely, but a new study shows that times have changed.

The research, by LV=, found three years ago that a quarter of people who were still working in retirement hated having to do so, but didn't have any other choice. Nowadays, 87% of people who are working over the age of 65 are happy with the situation. Two in five of them are working out of choice rather than necessity, and only one in ten feel they have to because they need the money.

It shouldn't come as such as shock that not everybody wants to spend a few decades doing absolutely nothing. Retiresavvy.co.uk recently found that the average retiree gets bored of life in retirement just ten months after leaving work. Over half miss their colleagues, four in ten feel they are wasting their talents, a third get tired of doing the same things every day and four in ten struggle to spend so much time with their other half.

As a result, they will often look for other ways to fill their time. A third will take on caring responsibilities, while one in six will start volunteering. There's no reason why some paid work shouldn't play a part in this mix.

Phased retirement

In many cases, people aren't ploughing on full time, but are taking the opportunity to phase retirement. One in seven reduced their hours as they approached retirement age, and then continued to do so after the age of 65. This enables them to keep their mind active, keep up with work colleagues, and retain an income - without having to stick with the 9-5.

The pension freedoms have made this sort of approach much easier. It means people can access smaller lump sums to supplement their reduced income, convert a portion of their pension into an income and leave the rest invested, or leave the whole lot invested and live off their earnings.

Golden era

Unfortunately, right now, we may be looking at the golden era of retirement. In future, as people retire on less generous pensions - and face receiving their state pensions later in life - there's every chance the balance will swing again and people will be working out of necessity.

While the pension freedoms will help them, there's only so much they can do if people haven't saved enough to be able to afford to retire. John Perks, Managing Director of Retirement Solutions at LV=, said: "Many people are staying active and remaining at work because they want to, but with large numbers approaching retirement worried they won't have enough saved, there is a risk that the next generation of 'Grey Collar Workers' will have to work out of necessity."

"The pension freedoms have given older workers more flexibility to choose the type of retirement they want, and how they fund it, but with more choices than ever before it's important to plan both before and at retirement."



Retire No More
Retire No More

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