New research from the Prudential has found that 40% of people who plan to retire this year would like to continue to work.
The poll of 1,000 people found that the main reason for wanting to stay in work was to remain “physically healthy and mentally active”. Other people simply did not like the idea of retiring and staying at home.
“New retirement reality”
The Prudential’s Vince Smith-Hughes said that a “new retirement reality” is taking hold of the UK with many people prepared to work longer in the face of extended State Pension ages and poor Annuity rates.
Experts believe that whilst many people actually want to delay their retirement, as proved by the Prudential survey, other people have no choice but to continue to work.
Would be retirees have been caught in a perfect storm over the past few years with falling Annuity rates, delayed State Pensions, volatile stockmarkets and all time low interest rates, meaning many people have had to delay their retirement because they simply cannot afford to stop work.
A simple Annuity rates comparison shows just how far Annuity rates have fallen over the past couple of years, principally due to falling gilt yields resulting from the Bank of England’s policy of Quantitative Easing (QE).
The Prudential research points to a growing trend of gradual retirement with many more people prepared to work on a part time basis, either because they have to in order to make ends meet or for the reasons given in the survey.
Vince Smith-Hughes again: “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.”
Our team of Independent Financial Advisers in Nottingham are experienced in developing retirement income strategies for clients the length and breadth of the UK. If you are approaching retirement and would like advice on your options call one of our IFAs today on 0115 933 8433, alternatively enquire online or email firstname.lastname@example.org