More over-50s plan to work beyond state pension age

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More are planning to work beyond state pension age

Financial planning in association with Scottish Widows bannerSurvey reveals an increasing number of older employees are intending to remain in the workforce beyond their state pension age

New research has found that UK workplaces are likely to see an increase in the number of employees working past the state pension age – simply because they enjoy their jobs.

A survey conducted by Retirement Advantage found that almost 40 per cent of over 50-year-olds are considering working beyond state pension age, with London (50 per cent), the East (47 per cent) and the South East (41 per cent) regions most likely to see older employees remain in work.

According to the findings, the most popular reason for wanting to continue working after the state pension age was simply enjoyment of work (54 per cent), followed by a sense of purpose (53 per cent) and to avoid boredom (42 per cent).

Other cited reasons include the desire to ease into retirement gradually and the need for extra income, with women more likely to be motivated by this than men.

Working beyond state pension age – the expert view

“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,” says Andrew Tully, pensions technical director at Retirement Advantage.

“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.”

“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 certainty they will be able to pay the bills throughout retirement but flexibility to cope with whatever the future might throw up.”

Scottish Widows retirement expert, Pete Glancy looks at the research in the context of a shift towards phased retirement:

“As result of changes to the state pension, taking early partial retirement will be an attractive option for some, freeing up time to pursue personal interests, while keeping the benefits of employment,” he says.

“If an individual doesn’t have adequate savings, it might be that working longer is the trade-off required to make this financially viable, however as the research shows, that is not something everyone would begrudge.”

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