Nearly 70% of UK adults are reevaluating their retirement planning, and now intend to work beyond their retirement date.
Over 33m UK adults (68%) say they will not give up work on their official retirement date, according to the new Real Retirement Report by Aviva.
The typical age for giving up work envisaged by most adults in their planning for retirement was 66, but many expect to be working well beyond that – and not always by choice, Aviva said.
While the official state retirement age will soon be set at 66, over a quarter (29%) believe they will work on towards 70, one in eight adults (12%) have factored working beyond the age of 70 into their retirement plan. Furthermore, 1 in 10 don’t have to worry about retirement planning at all – because they do not ever intend stopping work.
For over-55s, self-employment in later life is part of the retirement planning for 61% of people, with 44% believing that their hope for retail work after retirement age may delay their retirement plans. A further 27% are basing their retirement planning around leisure/hospitality work, Aviva said.
The top reason for building a retirement plan around part-time work or ‘part-tirement’ is to supplement their pension or improve financial standing (60%), with a range of social and emotional benefits, including a general desire to keep active, also shaping people’s planning for retirement, said Aviva.
Four in 10 (41%) of those questioned make their retirement planning based on a few extra years with their current employer, if possible. A quarter of those would opt for part-tirement with their employer, and 13% would continue to work full time.
However, Aviva has highlighted health issues as a significant concern that must now also feature in UK workers’ retirement planning. By the year 2025, Aviva’s research has shown that 8m over-50s will be obese, which could significantly alter their range of options for retirement planning.
Ill-health is currently cited by around 40% of retirees as their reason for giving up work, Aviva said.
