MORE THAN six million of today’s over-50s expect to work past the current state retirement age, according to retirement specialist LV=’s Working Late Index.
The report reveals that on average, those planning to work past state retirement age will work for an extra six years, which could see them retiring at age 71 for men and 66 for women based on today’s retirement age. One in five over-50s (19%) said they expect to work for at least a decade past the current state retirement age.
Affordability is the key reason stated by 51% of over-50s who plan to work beyond the state retirement age, while a further 11% want to delay taking out their pension in the hope its value would increase over time. In last year’s Working Late Index, more than four in ten (43%) of those planning to work beyond state retirement age said they would do so because they enjoyed the job they do. In 2011 this has fallen to 37%, showing a shift to continuing to work for financial need rather than enjoyment. This is a trend that is likely to continue as the state retirement age increases to age 65 years for women in 2018, and to 66 for men and women in 2020.
Ray Chinn, LV= Head of Pensions, said: “The trend of people retiring well into their 60s, or even their 70s, has been increasing slowly over the last few years. The rising cost of living, low interest rates on savings and the fact that as a nation we are living longer has had a significant impact on our retirement aspirations, and the amount of money we need to live a comfortable retirement. Our findings have shown that a significant number of over-50s expect to work many years past the state retirement age, and we’re likely to see this increase further.”
No rest for the wicked
LV=’s Working Late Index has shown that one in five over-50s – equivalent to 4.3 million people – had retired but have since gone back into work. London (27%) and the North West (25%) have the highest levels of retirees returning to the workplace.