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Working past the default retirement age

Adapting to changes in working patterns

More than half of over-55s currently in the workforce are happy to work past the default retirement age of 65, according to new research from MetLife[1].

Its nationwide study found 54% of those aged 55 or over who are currently in jobs want to keep working when they get to 65. However, one in four want to reduce their hours and work part-time, either in their current job or with a new employer.

New thinking on pensions
The demand for part-time work appears to highlight the need for changes in retirement income solutions to enable people to adapt to new working patterns and reductions in income. Solutions could include the use of deferred income guarantees, enabling savers to plan ahead for retirement and guaranteeing a level of income.

The nationwide study found nearly one in five (19%) of those aged 55 or over regret not having taken financial advice on their retirement income planning, while 29% say they have taken financial advice. However, that leaves more than two fifths who have not taken any advice.

New living patterns
As life expectancy is rising and working lives are getting longer, the demands on retirement income have evolved, and the demand for part-time working reflects that. New living patterns require retirement income solutions that offer flexibility to ensure sufficient income will be provided in later life.

However, the research also shows that people are not taking or getting the advice they need to adapt. Sound independent financial advice is central to people’s ability to make the right retirement income choice.
The research shows those aged 55 or over who want to carry on working full-time want to stay with their existing employer – more than 90% say they want to continue in their current job. However, those who want to work part-time are more likely to switch to a new employer – nearly 60% would move to a new part-time role.

Source:
[1]Research conducted online by Consumer Intelligence among 2,065 adults between
7-14 August 2013

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