Personal PensionAug 15 2014

Numbers of working pensioners on the rise: LV

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People are taking a more gradual approach to retirement and are working beyond the state pension age, with just 38 per cent of UK adults retired at state pension age, according to LV.

The survey of 1,116 UK adults aged over 60 carried by Opinium Research found that half of those working over 60 are doing so to boost their retirement income.

However, the key reasons people choose not to retire are because they enjoy working (52 per cent) and feel that they are far too young to stop (46 per cent).

More than a quarter of those who are working into later life run their own business, with 21 per cent of these becoming entrepreneurs in their 60s.

The research also showed that 15 per cent of those in their 60s have returned to work after retiring, with 39 per cent of those who do citing avoiding boredom as the reason.

However, very few consider taking their state pension later, with just 5 per cent of those working past retirement age deferring their state pension, despite the fact that this would increase the value of their state pension by 10.4 per cent a year.

Richard Rowney, managing director of life and pensions at LV, said: “Many people in their sixties and seventies enjoy their jobs and are keen to remain active in later life. However we cannot ignore that for others, their financial situation means they have to continue working – or even go back to work after retiring – because they simply cannot afford to stop.

“With the nature of retirement changing it is important that people have the income flexibility they need in later life.

“We would encourage those approaching retirement to seek financial advice to ensure they are able to make the most of their savings and pension funds and select the best retirement income solution for them.”