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Britons willing to work years past retirement

Britons willing to work years past retirement

Category: Pensions

Updated: 11/05/2010
First Published: 11/05/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Many Britons set to retire this year would be happy to work for many years to come in order to guarantee a higher level of income when they do eventually finish working.

Almost three fifths (57%) of 2010 retirees said that they would be happy to continue working, according to research conducted by Prudential.

Of these, a quarter indicated they would like to work for five more years, while 7% would be happy to continue in employment for another decade.

The changing attitudes are reflective of the effects the credit crunch and the recession have had on pension savings, while increased longevity is also demanding that those retiring have a significant pot of funds.

Not all of those retiring this year would be open to extending their working lives, however, as more than one in five (21%) said they would not consider it even if it meant they will struggle financially in the future.

A further 18% said they had saved enough to retire comfortably this year.

"Working beyond the normal retirement age is already a reality for many people who either have insufficient savings or simply want a greater income when they do come to retire," said Vince Smith-Hughes, head of retirement income at Prudential.

"But for a lot of people planning to retire in the very near future the state retirement age is sacred and their expectation has always been to retire at 65. Once they reach that milestone, regardless of the amount of money they have, they simply do not want to work anymore.

"This is a potential issue because the average 65 year-old is likely to live for another 20 more years, and that's a long time if you've only got limited retirement funds."

Analysis shows that working an extra five years from age 65 while paying £100 a month into a pension of £100,000 could boost a retirement pot by up to a third, assuming a 5% annual growth rate.

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