“The prospect of working into your mid 60s may not sound appealing to those just starting out in their careers, but more and more people are doing just that. The latest figures from DWP on the sliver-haired workforce reveal people are extending their working lives.
“One stark finding is the noticeable difference between men and women when it comes to their working lives. Men are more likely to work full time until their mid 60s when they will either retire or work part time. Women, on the other hand, are more likely to take a career break in their 30s, returning to work in their 50s.
“In 2011, for the first time, the employment rate for females aged 50–54 (76.6%) overtook the rate for 35–49 year olds (75.3%) and now the rates both sit at about 80%. While women choosing to have children later in life is no bad thing, it can increase the gender savings gap as women are unable to take advantage of compounding interest or plough any savings from their regular salary into a pension scheme. Add onto this to the ever decreasing but still present gender pay gap and it creates a formula which means that the unfortunate reality is, women who choose to take a career break are potentially setting themselves up for a less prosperous retirement.
“While working later into life might be an option for some at old age and actually might their desired choice, for many with health problems this is frankly impossible or unwanted, creating a situation where you are forced to choose between poverty in retirement or working well into old age. When considering retirement planning, it’s important to be realistic about how long you can work and what may hinder your ability to do so. This will undoubtable have a knock on impact on how much you will need to save to have a comfortable later life.”