The number of people working past 65 could hit the two million mark within the next ten years as increasing longevity and the need to boost retirement income drive further innovation in the retirement saving market, innovative retirement income specialist Primetime Retirement forecasts.
Its analysis shows the numbers working past 65 will more than double from the current 870,000* hitting 1.83 million or around 6% of the total UK workforce by 2022.The numbers of over-65s in the workforce increased by 19.5% between the first quarter of 2008 and the fourth quarter of 2010, Primetime Retirement analysis shows.
Growth in the number of over-65s working full-time was slightly higher at 20% than the 19% in those working part-time – however part-time workers were more than double the number of full-time employees.
And changes in State Pension Age – which will rise to 66 between November 2018 and October 2020 – will further increase the numbers working past 65.
Primetime Retirement believes the increasing number of those working over-65s is a major opportunity for advisers - and clients - to investigate all income options at retirement in order to retain flexibility.
Primetime Retirement Marketing Director Stuart Wilson said: “Advisers have a genuine opportunity to add real value to their retirement business at a time when clients approaching or at the point of retirement are changing their views on what retirement means.
“The numbers working past 65 have increased substantially in the past decade and that growth can only continue as changes in employment law and State Pensions mean more will have the opportunity to stay in work.
“Retirement income solutions have to adapt to the new reality and current solutions will not be suitable for all. Those who are in good health and still working want to keep their options open in retirement and need retirement income solutions which are flexible enough to adapt.”
Around two-thirds of those in work after reaching the age of 65 have been with their current employer for ten years or more, analysis shows.
Men are more likely than women to work full-time past State Pension Age, research shows. Around 4.6% of men work full-time while 7.3% work part-time compared with 3.6% of women working full-time and 8.9% working part-time.
Primetime Retirement is seeing strong demand from advisers and clients looking for increased flexibility in income solutions as they look to stay in work, especially amongst those who are in good health who do not yet qualify for any medical or lifestyle enhancement to a Lifetime Annuity rate.
The Primetime Retirement Plan offers advisers and clients a combination of a fixed income for six years which is not affected by age or gender; a Protected Maturity Amount at the end of the six-year term; and the potential for an investment upside. It also offers Value Protection Plus death benefit, a valuable lump sum benefit for those looking to pass on as much of their fund as possible should they die prematurely.
Clients can choose among the Accumulation+ plan aimed at those saving for retirement; the Balanced+ Plan for those seeking an income; the Capital+ Plan for those seeking income and potentially higher growth; and Income+ for those looking for higher income.
The first issue of the Retirement Plan opened on March 12th and the current issue closes on June 15th.
More details are available at http://www.primetimeretirement.co.uk
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