Pension savers face a life of part-tirement

Pension savers face a life of part-tirement

19 May 2010 / by Lois Avery

Pension savers now expect to stay in part-time work during retirement in order to fund their lifestyle, according to Aviva.

Dreams of holidays, gardening and spending time with grandchildren may be scuppered by a necessity to live a life of part-tirement.

Research from Aviva has highlighted that a lack of savings and poor pension funds among the over 55s will mean having to work into their 70s.

The report found that while a third of people would like to retire between the ages of 61-65, nearly as many see themselves giving up work between 66 and 70. One in eight plan to work beyond the age of 70, and one in 10 don't believe that they will ever stop working.

Financial incentives were the main reasons for people wanting to work on but many said it was because of social and emotional benefits. Reasons such as ‘keeping out from under their partner's feet' was the motivation behind many working into retirement along with keeping their mind active and interacting with others.

However Aviva has said that Ill health will stop many people’s ambitions to work much past 65.

Clive Bolton, at-retirement director for Aviva Life, said: "Government proposals mean that the state retirement age is set to increase over the next few years, but it appears that many UK adults already see themselves working well past the traditional retirement age. While increasing financial security is a major factor behind many people working, there are also significant emotional, social and intellectual benefits.

"Keeping minds active, staying out from under their partner's feet and enjoying social interaction appear to be real benefits that are pushing people to keep working. Gradual or part-tirement appears to be a very real choice for many older people rather than the traditional rigid retirement age.
However he also says that it is still important to ensure that sensible financial plans are made to boost income after the traditional retirement age.

“Indeed, we have found that ill health is cited by around four in 10 retirees as the reason for giving up work and as this cannot be predicted, it needs to be carefully planned for."

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