Personal Pension  

Significant numbers will never retire, says survey

The ONS’s labour market statistics for November 2013 revealed that the number of over-65s in some form of employment numbered 1.04 million in the third quarter of 2013, an increase of 3 per cent on the previous quarter, when only 1.01 million over-65s were in employment, equating to 9.7 per cent of the total age group.

Data showed that the number of people working over this age had grown steadily since the third quarter of 2011, when just 849,000 were in employment, making up 8.4 per cent of over 65s.

Findings from the ONS data signified a growing trend among older people choosing to work past traditional retirement ages, Andrew Tully, pensions technical director for provider MGM Advantage, claimed.

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He said: “We have seen a steady increase in over-65s continuing to work over the past 10 years.

“One group wants to keep working, but there is another group that must continue working as they financially can’t afford to retire.

“The perfect scenario would be to save more before retirement, but the fact that many people can work past this age could also be seen as a positive.”

Meanwhile, almost a third of Britons believe they will never fully retire, a survey by BlackRock has revealed.

A poll of 2,000 people aged between 25 and 74 years old, for BlackRock’s Investor Pulse survey, found that 29 per cent of respondents believed they will have to work on in some capacity beyond retirement age, rising to 40 per cent among those aged between 25 and 34.

Tony Stenning, head of UK retail at BlackRock, said: “Working in later life is going to be a reality for many to ensure they do not outlive their savings.”

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Rob Simpson, managing director of West Midlands-based Simpson Financial Services, said: “This does not mention that many people keep working for reasons other than money. They want to keep active into older age, while young people have time on their hands, and most do not switch onto financial planning until after 34 years of age.”