Part-time work is the new retirement plan

Almost a third of those aged 50 and over expect to work part-time to subsidise their retirement income once they call curtains on full-time employment, according to new research.

The survey of more than 1,600 UK adults aged 50-75, undertaken by YouGov for Old Mutual Wealth, found that 30 per cent of those who were not yet retired believe ad-hoc work would help fund their long-term retirement needs – up 4 percentage points from the firm’s previous research, in 2015.

In contrast, 12 per cent of pensioners are in part-time employment to supplement other sources of retirement income, including the state pension and other savings.

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Among the other more notable research findings, 56 per cent of those approaching retirement said they will continue to work in order to make ends meet, while three-fifths said they felt too young to retire.

Adrian Walker, retirement planning manager at OMW, said: “Many of the old certainties do not exist any more, and there are many more decisions that an individual can take themselves in order to structure their retirement how they want it.

“Some people talk of ‘having’ to work until they drop, but for many it is a personal choice. The generations coming up to retirement, and the ones even younger than that, need to look at their own circumstances and make a plan to ensure they can secure the retirement that they want, when they want.”

Adviser view

Chris Flynn, financial planner at Church Street Financial Planning based in Stoke-on-Trent, said: “People can access their pensions from age 55, but I imagine those aged between 55 and 65 will continue to work. Those aged between 65 and 75 are unlikely to work unless they have a significant shortfall because most people look forward to retirement.”