One aspect of retirement that is changing is the growing number of people who are working beyond retirement.
Reasons for continuing to work beyond retirement are varied, but it is not necessarily because they need the money.
The latest State of Retirement report from insurer LV= examined ‘Grey Collar Workers’ and found that nearly 87% who are aged 65 and over are happy to be in employment.
Of these, 40% are working beyond retirement out of choice.
Only 11% feel obliged to continue working beyond retirement because they need the money.
The study also found that one in seven people were reducing their hours and opting for a semi-retirement instead of retiring straight from full-time work.
This gradually transition from full time work to full time to retirement makes real sense, as it offers the opportunity to dip a toe in the water of retirement, whilst still enjoying the income and social benefits which come from working.
The research from LV= highlights the importance of saving and it was found that more than half of those approaching retirement are concerned they won’t have enough saved.
56% think they will need to find income from other sources.
John Perks, Managing Director of Retirement Solutions at LV=, said:
“Many people are staying active and remaining at work because they want to, but with large numbers approaching retirement worried they won’t have enough saved, there is a risk that the next generation of ‘Grey Collar Workers’ will have to work out of necessity.
“The pension freedoms have given older workers more flexibility to choose the type of retirement they want, and how they fund it, but with more choices than ever before it’s important to plan both before and at retirement.
“People approaching retirement need access to affordable, regulated advice to help them shop around and get more from their money, giving them the freedom to decide how long they want to keep working.”