Over half of people planning to retire this year are either working beyond their state pension age already, or plan to do so, according to Prudential’s Class of 2016 study.
This is the fourth consecutive year that the majority of respondents have said that work is, or will be, a key part of their early retirement, if it means they can give their retirement finances a boost.
When asked; “Thinking about working beyond the State Pension age, ideally what would you like to do/are you doing as a job?”, 29% said they would look to change employers, 27% would stay in their current role but work fewer hours, 6% would stay with their existing employer but working in a less stressful/easier role, while 11% plan to stay in their current job full time.
A creative 13% want to make money from a hobby, while 7% have set their sights on starting a business. The remaining 7% weren’t sure what they would do.
See our guide on How to make money from your sofa if you’re looking to boost your income.
With this year’s retirees expecting to be in retirement for a further 20 years, finances are key to their decisions. Three in 10 said they did not think that their pension and savings would provide a sufficient income, while 22% were postponing their plans to retire purely because they did not feel they could afford to stop working.
However, finances were not the only motivation – just over half of survey respondents said they wanted to keep their mind and body active. Over a third did not ‘feel ready’ to retire, while 41% simply enjoyed work too much to give it up. One in six of those to put retirement on hold said they did not want to ever stop working.
‘Try and save as much money as early as possible’
Stan Russell, a retirement income expert at Prudential, says: “With this year’s retirees preparing to spend an average of 20 years in retirement it’s understandable why they now see giving up work as a gradual process rather than a one-off event.
“However, for everyone who can choose their retirement date there are some who have no choice because they physically can’t continue at work, and others whose financial situation forces them to stay on.
“Anyone looking to give themselves the greatest degree of choice of when to give up work should be trying to save as much money as possible as early as possible during their careers.”
See our guide on How to start your pension.