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Two-thirds of pensioners to work beyond retirement

Two-thirds of pensioners to work beyond retirement

Category: Pensions

Updated: 17/02/2011
First Published: 17/02/2011

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 It is now over 6 months old so the content may be out of date.

Increasing numbers of elderly workers face having to change their retirement plans and work later into life, a new report has revealed.

Nearly two-thirds of people who had wanted to retire in 2011 would consider postponing their pension and continuing to work in order to boost their retirement income, according to a new survey by Prudential.

Of those people mulling over whether to delay their retirement, nearly half said they will definitely have to continue to work in order to supplement their pension or build up their savings further.

The report revealed a growing trend for people to enter 'part-retirement', a move which has become increasingly common because of the need to fund a far longer period of retirement.

Of the employees who initially intended to retire this year but who are now planning to continue working, over half said they would like to stay with their current employer, whether it would be working part-time or full-time.

Just over one in ten said they planned to seek part-time work with a new employer.

Almost a third of those due to retire in 2011 said they would consider working for up to another two years if it guaranteed them a greater retirement income, while one in ten were ready to work for five to 10 more years to boost their retirement pot.

However, the research also showed that not all those planning to remain in paid employment are doing so purely for financial reasons.

More than half of those willing to keep working past the standard retirement age say they do not feel ready to retire, while a similar number said they still enjoy working.

"The only realistic option for people who want to avoid having to continue to work beyond the traditional retirement age, is to save more and to start saving earlier," said Vince Smith-Hughes of Prudential.

"Since 2007, studies by Prudential have identified part-retirement as a growing trend - a trend that looks set to continue in 2011.

"This year will see the phasing out of the default retirement age, making it easier for those wishing to stay on at work.

"Additional retirement income is also becoming more important as the security of a defined benefit pension scheme disappears for many people."

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