Across Europe, workers in the UK today are the least likely to say they expect to stop work all at once and fully retire
Only 1 in 4 UK workers plan this, compared to half already retired who say that they stopped working all at once and entered full retirement
The number of workers over the age of 55 has increased steadily in the UK and other OECD countries*
UK pension policy and employment laws leading the way to gradual transition into retirement
Workers in the UK were previously more likely to move straight into full retirement after giving up work with half of current retirees taking this option. However, stopping work on a set date like a 65th birthday is no longer seen as the norm. Across Europe, workers in Spain (54%) and France (52%) are the most likely to still envisage taking this route, however UK workers are the least likely to stop work one day and start a life of leisure the next, with only 1 in 4 (27%) favouring this option.
When it comes to retirement one thing that distinguishes men and women is their likelihood to transition into retirement, with UK men far more likely (32%) than women (23%) to stop work all at once and hang up their tools for good.
The concept of retirement is changing. Since the year 2000, the balance of the workforce has changed as people delay retirement or work in a different capacity beyond typical or state pension ages resulting in a higher numbers of older workers.
Retirement has become an active stage of life with people remaining economically active. In fact, the majority of UK workers, 61%, see some form of transition to retirement where they continue working as they currently are or work part time for a while during their ‘retirement’.
The two most common reasons for workers in the UK to continue working longer are positive: keeping active/keeping brain alert (62%) and enjoying work (39%). However, staying in the job market was seen as less positive for some, who saw extending their working life as a necessity. The state pension providing enough money was a specific concern for 33%, while running out of money caused anxiety for 30% of respondents.
Steven Cameron, Pensions Director at Aegon, commented: “Gone are the days when reaching state pension age meant a sudden and complete end to work. The UK seems to be leading the charge here compared to other countries with less than half as many planning a sudden stop compared to those in France and Spain. Many people are choosing to keep working and earning, perhaps by cutting back their hours gradually, even once they’ve started taking their pension. The UK government’s introduction of pension freedoms and banning employers from having a fixed retirement age has made it easier for more people in the UK to choose to work past traditional retirement ages.”
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