New research from MGM Advantage shows that 1 in 10 (10%) people ideally never want to retire, with this figure highest, at just below 1 in 6 (16%) for the 65+ age group.
The research also shows that less than 1 in 5 adults (18%) ideally want to retire below the age of 60.
The findings suggest that UK adults, especially those currently of retirement age, are looking to adopt a more flexible approach to work in older age. With the Monty Python Live tour starting at the O2 arena last week, MGM Advantage has called this the ‘Monty Python effect’ to reflect the tireless work ethic of the five surviving members of the Monty Python comedy team, who are all aged over 70.
Andrew Tully, Pensions Technical Director, MGM Advantage said: ‘Our research shows that we should perhaps look to retire the word ‘retirement’. People today not only expect to be working longer, they want to, with a significant number hoping never to stop work at all. We expect to see a lot more people working way into their 70s in the future, just like the energetic Monty Python team.
‘This trend will have a massive impact on UK employment. Currently well over 600,000 people reach the age of 65 each year, but if 1 in 10 of them, or 60,000, decide to continue in work in future years then the workforce will age considerably. Perceptions will change as employers recognise that over 65s are increasingly available as a source of skilled and experienced workers. I also imagine we’ll see older people fight back against being called ‘pensioners’ or ‘OAPs’ as they want to distance themselves from negative stereotypes.
‘It’s clear that there’s going to need to be a lot more freedom and flexibility in the pensions market to accommodate people who don’t want to stop working, but still want to be able to access their pension savings without getting hit by a big tax bill.’
However, the research also shows that many feel they will be compelled by their circumstances to retire after they would ideally like to. Although almost 6 in 10 (56%) people ideally want to retire before the age of 65, almost 7 in 10 (69%) felt they would actually retire aged 65+ or indeed that they never would. A separate finding shows that a third (33%) of non-retirees’ main priority concerning their retirement is being able to afford to retire when they want to.
Andrew Tully said: ‘Clearly people are feeling the pinch, and worried about being able to retire when they’d like to. In some senses, this is to be encouraged – people need to take an honest and realistic look at their finances before making the decision to retire. From April, people will be able to access to all of their savings at retirement, so they will need to consider the long-term sustainable income they may need through their retirement, as well as the ability to take taxed lump sums as and when they want.’
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