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‘Elderly and employed’: Prudential identifies a generation of over-65s powering the UK

David Woods , 04 May 2012

olderworker

Two in five (40%) people planning to retire this year would be happy to work past 65 if they had the chance, according to research from Prudential.

The company's Class of 2012 study, which looks at the finances and expectations of those planning to retire this year, found 48% of men and 32% of women would be happy to continue working past the standard retirement age.

The main motivation for more than two thirds (68%) of this year's retirees who want to stay in the workforce past 65, is a desire to remain physically healthy and mentally active, while 39% do not like the idea of retiring and just staying at home. More than half (54%) enjoy working.

But despite wanting to stay in work, only 13% would choose to continue to work full-time with their current employer.

Nearly half (49%) of those retirees who want to work past 65 years old would prefer to work part-time, either with their current employer or in a new role, in order to strike a better work life balance.

More than one in 10 of entrepreneurial retirees would consider starting their own business after the age of 65 or earn money from a hobby in order to keep working. Five per cent would work as charity volunteers.

ONS figures show average retirement ages are rising, with men now retiring at an average age of 64.6, compared with 63.8 in 2004, and women working until 62.3 years compared with 61.2 previously.

Vince Smith-Hughes, retirement expert at Prudential, said: "There is a new retirement reality taking shape across the UK, with thousands of people actively choosing to work past the traditional retirement age.

"The fact that so many of this year's retirees would keep working on a part-time basis is a strong indication that, for many, working is as much about staying young at heart as it is about funding retirement.

"Gradual retirement is an increasing trend among pensioners, whether this means remaining in the same job on a flexible basis or even setting up their own business! Those retiring at 65 will face an average of nineteen years in retirement which makes the financial and social benefits of working for longer an even bigger draw for a new generation of industrious retirees."

The online survey conducted by Research Plus between 2 and 12 December 2011 among 9,614 UK non- retired adults aged 45+, including 1,003 retiring in 2012.

 

 

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different spin

Allan Page 04 May 2012

This is a different spin on the the reality that I and many of my peer face. With less than 2 years to go before state retirement age my dilemma is that although I began retirement planning in my 20s and was paying the maximum amount allowed into a company pension fund my future is still very insecure. The vagaries of shady employers and the stock market in the 80s have derailed all my planning leaving me with the prospect of being mostly reliant on the state pension. What alternative is there but to continue work in some capacity?

Retirement, what retirement?

bj 04 May 2012

Following on from the previous commenter, my plans were build a business that I could sell to provide for my retirement. Had we not been cursed with greedy bankers and inept politicians, it would have worked. Now I'm almost 74 and working a 6 day week to keep my business afloat in the hope that I can sell it before I die! Needless to ay the perpetrators of the financial mess that we are in have long since retired on their ill gotten gains.

Incomplete Survey

Trisha Goring 04 May 2012

I agree with the comments already made and lets face it most of us could have retired years ago with just one annual bonus similar to those paid to top bankers every year. Bearing this in mind, I'm amazed that none of the people questioned in the survey said they wanted to continue to work because they couldn't afford to retire at 65. Was this question omitted from the survey? Like many others, I have a 10 year gap in my pension pot due to continually being made redundant back in the 80s and not being with a company long enough to join their pension scheme.

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