Personal Pension  

Pru reveals one in four not ready to retire

About 13 per cent of those who had been scheduled to retire this year have chosen to delay their plans because they do not want to give up work just yet, Prudential research reveals.

Prudential’s study of the aspirations of people who plan to become new retirees this year showed 54 per cent will consider working past the state pension age in an attempt to make their retirement more financially comfortable.

The research found 23 per cent would consider working full-time while 31 per cent would weigh up the idea of working on part-time.

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Ideally they would prefer to continue in their current job with reduced hours, with 32 per cent of those considering working past the state pension age, suggesting that option is the one that would suit them best.

However, this year’s results highlight positive attitudes to retirement despite ongoing financial pressures.

The main motivation for 57 per cent of this year’s retirees who would consider continuing to work past the traditional retirement age is to keep mentally and physically fit.

Some 35 per cent also cite the ability to boost retirement savings as a consideration, while 40 per cent simply enjoy working and 39 per cent do not feel ready to retire just yet.

Stan Russell, a retirement income expert at Prudential, said: “For many people retirement is now a gradual process rather than a watershed where you simply stop working one day and become retired the next, and that is reflected in the change in attitudes shown by our research.

“However, there is no one size fits all solution to retirement and many people will be looking forward to leaving work as soon as they can.

“What is important is that people plan ahead for retirement and do as much as possible to ensure a comfortable retirement by consulting a financial adviser or retirement specialist well ahead of their planned retirement date.

“Working past traditional retirement ages is not solely driven by financial pressures and the research shows growing numbers of people wanting to carry on working because they enjoy it and because it keeps them stimulated mentally and physically.

“Increased life expectancy and improvements in general health are changing how we think about retirement.”