New research from wealth manager Old Mutual Wealth shows that more of those approaching retirement are expecting part-time work to contribute to meeting their future needs for retirement income.
The survey of over 1,600 UK adults, aged 50-75, undertaken by YouGov found that 30% of those who were not yet retired expected to use part-time work to help fund their long-term retirement needs when they decided to give up full-time employment.
These figures compare to just 12% of existing retirees who are currently working part-time to supplement other sources of retirement income, including the state pension and other savings. Part-time work is equally valuable for current and future retirees as both groups expect to secure around 30% of their total retirement income from employment income.
Further data from the survey showed that :
- 56% of those approaching retirement suggest one of the reasons they will continue to work is in order to make ends meet,
- 47% said that they also wanted to maintain social interaction, while
- 61% said one of the reasons was that they felt too young to retire.
In addition, just 15% of current retirees chose to retire when they reached the state pension age.
Adrian Walker, retirement planning manager at Old Mutual Wealth, said:
“This is the third year that we have undertaken this research and the trends that are starting to emerge are fascinating. The old fashioned concept of working until you reach an age that is set by the state, at which point you take your carriage clock and drift quietly into ‘retirement’, is not recognised by many of those approaching that milestone.
“Many of the old certainties do not exist anymore, and there are many more decisions that an individual can take themselves in order to structure their retirement how they want it. Some people talk of ‘having’ to work until they drop, but for many it is a personal choice. The generations coming up to retirement, and the ones even younger than that, need to look at their own circumstances and make a plan to ensure they can secure the retirement that they want, when they want.
“Pension Wise, the government’s free pension guidance service, has recently lowered its minimum age to 50 so slightly younger people can get help if needed. However the best way to help ensure you make a plan and stick to it is with the help of a professional financial adviser.”
 Redefining Retirement – Old Mutual Wealth/YouGov 2015