Discover why your retirement could be further away than you'd hoped, as a detailed report and video reveals the surprising conclusion that a third of over 50s employed in the private sector are planning to defer their retirement rather than ‘cash out’ early under pension freedoms.
Influential Report Discovers Late Retirement Is Becoming More Popular
The Primary Reasons For Delayed Retirement
In its Working Lives Report 2016, Aviva has learned that more than one in three people (36 per cent) expects their retirement to be delayed by an average of eight years.
Among those whose retirement will now be later than originally hoped, the report found that a lack of pension savings (46 per cent) is the primary reason why people expect to postpone their retirement plans.
The second most common reason for working longer is the amount that is likely to be available through the State Pension (32 per cent), making it evident affordability is a real issue for a high proportion of the over-50s.
However, not all the reasons given for deferring retirement were negative.
One in five (21 per cent) of those expecting to work longer are doing so because they feel they still have a lot to offer their employer. A similar proportion (20 per cent) said that job satisfaction has encouraged them to put off retirement.
Aviva’s Report Is Not Just About Retirement
Here are the key findings.Large employers are most concerned by staying ahead of their competitors in 2016 while new legislation is the biggest headache for small firms.
Firms also report growing pressure to keep up with salary and benefit expectations, although fewer people understand what is available to them.
Modernised pension schemes are the biggest business benefit of auto-enrolment to date, but passing on costs to customers remains a concern.
More than one in three employees over the age of 50 now expects to retire at a later date than they hoped when they were 40 – they expect to work eight years longer on average.
Employers’ fears about a skills exodus following the pension freedoms may be overstated.
You can download the full report from Aviva’s website by clicking the image below.
Retirement Observation From A SIPPclub Member
As one of the potential 'late retirees', I have had numerous discussions on the question - it is very interesting to find that amongst my group, the happiest and most fulfilled are those who, like me, just keep buggering on. The retired, with some exceptions of course, are bored and lose enthusiasm for things they once enjoyed - partly due to the fact they are free to do them at any time so it is no longer the treat it once was. In fact, some have returned to work after a period off - though not always doing what they did previously. Retiring to the pre-expiry waiting room is not what it is cracked up to be.
My personal advice to anyone contemplating giving up work would be simple. Take a bit more time off, keep up the interest and keep on earning. You will remain a respected figure whose knowledge is invaluable, and the family will always find a use for any surplus funds!!!
Robert C Smith FRICS
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