Financial reasons cited as the main reason behind the need to keep earning in the UK beyond retirement age, report shows

Written by Ray Clancy

Thursday, 20 May 2010 10:00

Financial incentives are likely to keep more people working into retirement with self employment becoming more and more popular, according to new research.

Almost 70% of UK adults intend to work beyond their retirement date, many for financial reasons although they also say there are emotional benefits to not stopping work.

And one in 10 adults believe they won’t ever stop working, the Real Retirement Report from Aviva shows.

The research found that while a third, 31%, of people would like to retire between the ages of 61 and 65, nearly as many, 29%, see themselves giving up work between 66 and 70. One in eight, 12%, plan to work beyond the age of 70, and 10% don’t believe that they will ever stop working. The typical age of intended retirement for all adults questioned is 66 years.

Self employment is seen as the top employment option in retirement for the over 55s with 61% preferring this option followed by retail work, 44%, and leisure/hospitality work at 27%. The over 55s’ willingness to embrace self employment, which offers freedom and flexibility, highlights the developing trend of gradual retirement or part-tirement, the research report says.

Financial incentives are the main reason for continuing to work with 60% giving money as the factor that will keep them earning, while 54% said it would keep them from under their partner’s feet. Keeping their mind active and interacting with others were also important to nearly half of respondents.

Men are more likely to think there aren’t any benefits of working past retirement when compared to women but women are marginally less likely than men to work to improve their finances.

The research also found that 41% of over 55s say they would continue working for their current employer beyond their official retirement date if possible. Of those a quarter would opt for part-tirement, while 13% would continue to work full time. However, one in 20 say this is not an option for them due to the enforced retirement date at their current place of work.

‘Government proposals mean that the state retirement age is set to increase over the next few years, but it appears that many UK adults already see themselves working well past the traditional retirement age. While increasing financial security is a major factor behind many people working, there are also significant emotional, social and intellectual benefits,’ said Clive Bolton, at-retirement director for Aviva Life.

‘Gradual or part-tirement appears to be a very real choice for many older people rather than the traditional rigid retirement age. However, with 61% of people seeing self employment as the best career choice for retirement, it is still important to ensure that sensible financial plans are made to boost income after the traditional retirement age,’ he added.