Almost 1/3 of future pensioners expecting to work to fund retirement – Old Mutual Wealth
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Almost 1/3 of future pensioners expecting to work to fund retirement 

30/06/2016
  • Old Mutual Wealth research with YouGov shows 30% of those aged 50+ now expect a job to contribute to their retirement income
  • They also expect work to account for almost a third of their total income
  • Just 15% of current retirees retired because they reached their state pension age

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.

This figure is up from Old Mutual Wealth’s last research in 2015[1], which showed 26% were expecting to work part-time work in retirement.

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 WalkerAdrian 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.”


[1] Redefining Retirement – Old Mutual Wealth/YouGov 2015

 

For more information contact

Michael GlenisterOld Mutual Wealth020 7778 963807469 144535michael.glenister@omwealth.com

Notes to editors:

About Quilter plc:

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £116.5 billion in customer investments (as at 30 June 2018).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions and discretionary fund management.

The business is comprised of two segments: Wealth Platforms and Advice and Wealth Management.

Wealth Platforms includes the Old Mutual Wealth UK Platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.

Advice and Wealth Management encompasses the financial planning network, Intrinsic; Old Mutual Wealth Private Client Advisers; discretionary fund management business, Quilter Cheviot; and the Multi-asset investment solutions business.

The Quilter plc businesses are being re-branded to Quilter over a period of approximately two years:

• The Multi-asset business is now Quilter Investors

• Intrinsic to Quilter Financial Planning

• Private Client Advisers to Quilter Private Client Advisers

• The UK Platform to Quilter Wealth Solutions

• The International business to Quilter International

• The Heritage life assurance business to Quilter Life Assurance

• Quilter Cheviot will retain its name

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