Class of 2017:‘pretirement’ is the new reality for many retirees
14 July 2017
- For a fifth year in a row, more than half of people planning to retire this year will consider working past their State Pension age
- Around one in three (33 per cent) of these people say they enjoy working
- And more than a quarter (26 per cent) don’t like the idea of retiring and being at home all the time
The shift to ‘pretirement’ - where people gradually scale back on work or change jobs altogether rather than stopping work entirely - has become the new retirement reality, according to Prudential’s latest annual research1 into the finances and aspirations of those planning to retire in the year ahead. This year is the fifth in a row in which more than half of those due to retire are considering working past their State Pension age or are already doing so.
Many of the people who are planning to retire this year but are now considering working past their State Pension age would do so in the hope of guaranteeing themselves a greater retirement income. Just under one in 10 (nine per cent) would continue full-time in their current job, while 28 per cent would prefer to cut their hours with their current employer. A further three in ten (29 per cent) would look for a new employer altogether.
Meanwhile, an entrepreneurial one in five (20 per cent) would hope to either start a new business or earn some money from a hobby.
Prudential’s unique annual study - which over the past ten years has tracked the financial plans and aspirations of people planning to retire in the year ahead - shows that for the Class of 2017 working on is not just about money. People planning to give up work this year expect their retirement to last for an average of just over 20 years, and with that in mind around a quarter (26 per cent) of those who would consider working past their State Pension age say they do not like the idea of retiring and being at home all the time for such a long period.