Less than one in three, 29 per cent, say they intend to stop working when they reach retirement age despite the vast majority believing they would at least “get by” financially if they were to do so.
Aegon surveyed over 2,000 people between the ages of 50 and 65 to gauge their attitudes towards retirement and to see what sort of financial provision they have in place. The study shows retirement is becoming a second adolescence, and is more likely to include flexible working or a new career.
The survey reveals that 61 per cent expect to carry on working in some capacity after they reach retirement age or pursue further education or charity work – and, for most, not because they have to. More than one in ten said ‘love of the job’ made them want to stay in the work force while 14 per cent argued that they were simply ‘too young’ to retire. 12 per cent said they would like to try out a completely different career in their retirement.
But the report highlights a significant knowledge gap when it comes to planning, as 42 per cent of respondents have no clear idea about how much income they will have in retirement and 44 per cent expected to receive an income less than £15,000 a year. Only 14 per cent thought their pension savings would produce more than £15,000 a year.
Rachel Vahey, head of pensions development at Aegon says: “Retirement isn’t the abrupt cliff edge it once was and, for many of today’s ‘baby boomers’, retirement age marks a new and exciting chapter of their lives.
“Today’s retirees have to deal with the fact that people are living longer and stockmarkets are more volatile. Running out of money is a big fear factor and many people want the security of a guaranteed income. The good news is there are more products and solutions available now to complement people’s changing lifestyles.”