AegonJul 24 2018

Men more likely to stop working and retire at once

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Men more likely to stop working and retire at once

Men are more likely to hang up their tools and retire at once, as more people choose to work past traditional retirement ages, or phase in retirement gradually, research has found.

Aegon found stopping work on a set date or people's 65 birthday is no longer the norm with a mere 27 per cent of UK workers now likely to stop work and start a life of leisure.

But the survey, which polled 14,400 workers and 1,600 retirees in 15 countries earlier this year, found UK men, at 32 per cent, were more likely to consider such a sudden switch than women (23 per cent ).

Across Europe, workers in the UK were the least likely to expect to stop work all at once and fully retire.

Steven Cameron, pensions director at Aegon, said: "Gone are the days when reaching state pension age meant a sudden and complete end to work.

"The UK seems to be leading the charge here compared to other countries with less than half as many planning a sudden stop compared to those in France and Spain.

"The UK government’s introduction of pension freedoms and banning employers from having a fixed retirement age has made it easier for more people in the UK to choose to work past traditional retirement ages."

Since 2000, the balance of the workforce has gradually changed as people delayed retirement or worked part time resulting in a higher numbers of older workers.

The two most common reasons for people to continue working into retirement were to keep their brain alert, and because they enjoying working.

But a third were also worried about the state pension providing enough money, while 30 per cent were worried about running out of money.

Last week (17 July) the Women and Equalities Select Committee called on the government to do more to help older workers stay in work for longer, including introducing flexible working.

The MPs found discrimination was the "root cause" of the challenges faced by older people overlooked for employment opportunities in the UK.

Martin Bamford, chartered financial planner at Surrey-based Informed Choice and Solla accredited later life adviser, said: "Many clients now work towards an individual plan for their retirement, rather than arbitrary dates like a 65 birthday.

"When we build a lifetime cash flow forecast for our clients, we’re able to demonstrate what full or partial retirement at a variety of points in their life could look like in financial terms."

He said it was important to be realistic about what retirement looks like.

"Whilst there are generally better outcomes for those who stay active and mentally engaged in later life, it’s unrealistic to base a plan around manual labour or working long hours," he said.

"Health issues, either for the retiree or their close relatives, can often derail an intention to work later in life, so a retirement plan should have an option to get by financially if earlier retirement is necessary."

aamina.zafar@ft.com