SunLife’s Finances After 50 report surveyed 3,000 people over 50 and found that of those people still working past 65, 24% are still working full time, 39% are working part time and 27% work for themselves and 18% have more than one job.
Men are slightly more likely to work past 65 than women (16% compared to 11%), and across the UK, the numbers vary too with just 8% of over 65s in Yorkshire and Humberside still working and just 10% in the North West compared to 15% in Wales, 16% in Scotland, 19% in London, 20% in the North East and 24% in the West Midlands. The other regions have fewer over 65s working that the UK average - in the South West its 14%, in the East Midlands, 13% and East Anglia, 12%.
The research also reveals that over 65s who are still working and therefore, still earning, are actually less confident that they will have enough money for their retirement.
According to SunLife’s Finances After 50 report, over 65s who are still working have a monthly income of £2,688 - £715 more than those who are retired or not working - and have £466.71 left over each month as ‘spare cash’ – £185.18 more than those who are retired or not working.
They are more likely to have savings than over 65s who are not working (94% compared to 87%) and they have almost twice as much saved as over 65s who are retired or not working - £119,211.81 compared to £64,455.35*.
Working over 65s are also more likely to have a private pension and have more in their pot than over 65s who are retired or not working (£177,560.67 on average compared to £120,682.69*) - probably because they are either not drawing from it yet, or are drawing less.
However, despite being in a stronger financial position than those who are retired or not working, 40% of over 65s who are still working are not confident they have enough in their savings investments and pensions to provide them with enough income for retirement, compared to 30% of those over 65s who are retired or not working.
Simon Stanney, equity release director at SunLife said: “Our research reveals that overall, 31% of over 65s are worried about being able to fund their retirement, but those still working are the most concerned, despite being in what would appear to be a much stronger financial position.
“Obviously we don’t know what type of lifestyle in retirement these people are hoping to have, which could well be behind their fears that they will not have ‘sufficient income’ to support it , however, if they are worried, there are other ways to bolster retirement income.
“According to our research, the majority of over 65s own their own homes (83% of working over 65s - and 78% of retired and not working over 65s) with an average value of £228k, which means equity release could offer a solution.
“Equity release allows homeowners over 55 to release some of the money tied up in the value of their home without having to move. It's tax-free and the money can be used however they wish, so could help make their retirement more comfortable.”
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