Providers have to develop solutions offering flexibility combined with increasing use of income or capital guarantees, Metlife has said, citing new research which it claims highlights the need for new income solutions to allow people to maximise the pension freedoms.
Research published by Metlife revealed that those over the age of 50 are looking for ways to prolong their working life, with 68 per cent considering retraining so they can work longer in their current job or find a new career.
The research, conducted among 2,531 employed adults by Consumer Intelligence, underlined a shift in traditional working patterns, with half of those who would consider retraining, planning to look at full-time or part-time employment, while 13 per cent would do so to launch their own business.
Financial pressures and the lack of sufficient retirement savings is a major motivation, with 55 per cent of working over-50s admitting they are not financially well-prepared for retirement.
However, 23 per cent said they enjoy working and 30 per cent say they would miss the social interaction of work if they gave it up.
The study showed that 71 per cent of all workers say they would consider working after the traditional retirement ages, with just 31 per cent expecting to retire completely from full-time work.
Dominic Grinstead, managing director at Metlife UK, added that the numbers contemplating working in retirement, whether it’s full-time or part-time, showed that as the retirement landscape changes and people prefer to phase retirement, flexible income solutions will be needed to enable people to make the best possible use of pension freedoms.
“Many savers will need certainty about future income and capital, so providers will have to develop solutions offering flexibility combined with increasing use of income or capital guarantees.”
MetLife has already lowered its minimum initial investment to £30,000 – after tax free cash has been taken – to enable more customers to utilise the new flexibilities in April.