Research by The Saga Annuity Service shows that a third of over 50s expect to delay retirement, which is an increase of 15% compared to last year. Trade work, office work and health and care work are the most common careers keeping people in the workforce past retirement.
Overall, 31% of men and 29% of women say they have come to terms with working past 65 years old. In fact, this year Saga has seen a 6% increase in the number of men who say they expect to work past the statutory retirement age and a 16% increase in the number of women who say they are planning to work longer.
While the long term trend appears to be for people to work longer, in the last year men have actually retired almost a full year younger than last year. In 2012 the average retirement age for men was 63 years and 303 days, but this year their average retirement age is 62 years and 344 days. Women also seem to retire earlier, as the average retirement age for women in 2012 was 62 years and 164 days, and this year it’s 61 years and 279 days.
Unlike last year, it’s people in the South West – not the South East– that expect to work longer than anywhere else in the country, while people in the North East still expect to retire the earliest.
Delaying retirement gives people more time to boost their pension fund. However, it seems people still aren’t planning to make the most of it as only 35% say they will take the time to shop around for an annuity. In fact, only 60% of those who have bought an annuity in the last two years say they have shopped around for the best deal.
Roger Ramsden, chief executive, Saga Services commented: “Whilst some people delay retirement for financial reasons, we’re finding an increasing number of people are staying in the workforce because they enjoy what they do, they like to keep their mind and body active and because they enjoy socialising with work colleagues.
Whatever age they chose to retire, the important thing is for people to make the most of their pension savings. Far too few say they will shop around for an annuity, which is vital when it comes to getting the best deal.”
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