There was a time, not so long ago, when many people’s lives fell neatly into three distinct stages – they were educated, embarked upon a career and then retired. The date at which people chose to retire was generally in line with their state retirement age, meaning 60 for women and 65 for men.
Today, retirement no longer means clearing your desk on your 60th or 65th birthday and facing a future without work and the benefits that go with it. Increasingly, people are adopting a more gradual approach to retirement and choosing to work beyond their state pension age, slowly cutting back the amount of time they spend at work, with some even choosing completely new career paths.
‘Pretirement’, the process of gradually reducing the number of hours worked, is now a widely-accepted concept which generally begins in people’s 50s and can run into their 70s. Figures from the Office for National Statistics for December 2017 to February 2018 show that just under 1.2m people over the age of 65 were in work, and for the first time, there were more than 10m people aged over 50m in employment out of a total workforce of 32.2m.
WHY PEOPLE CONTINUE TO WORK
The key reasons people adopt this approach include doing so because they enjoy the work they do, they’re fit and healthy and far too young to stop, they feel they still have something to offer their workplace, or because they need to do so to boost their retirement income.
As the nature of retirement continues to change, it’s important to have the right retirement plans in place so that you can choose the path to full retirement that suits you best. Taking financial advice in the years leading up to retirement will ensure that when the time comes, you can make the best use of your savings and pension funds and select the best retirement income solution for your circumstances.