More than half of people say they plan to work at least part-time during their retirement with the average worker planning to leave their primary job aged 66, according to research.
Fidelity International said 52% of people planned to continue working after their retirement. Some 45% of people surveyed said they expected to work into their 70s.
The provider said continued improvements in life expectancy meant working patterns would definitely change. It said recent statistics from the Office of National Statistics (ONS) showed that the proportion of those aged over 70 in full- or part-time employment had doubled in the past decade.
Fidelity International director for workplace investing Maike Currie said: “Today’s so-called retirees are healthier, living longer, and retiring at different ages. So, it is unsurprising that people have no desire to retire and are defying traditional expectations.
“The economic power of those who were once considered ‘past it’ can now be felt everywhere. This will transform the jobs market as more people work into their late 60s or even early 70s and they will have a growing influence on consumer spending as pension reforms allow them to cash in their lifetime savings and spend the money as they wish.”
Element of choice
The research found that people on higher incomes – more than £50,000 – were more likely to want to continue working. Some 58% of higher earners compared to 50% of people earning below £50,000 wanted to continue working. The business commented that it suggested for some, choice plays a part in their decision.
Currie added: “Retirement is no longer the cliff edge it used to be – the important thing, however, is to have choice. Whether that be to work, to retire completely, or somewhere in between, it’s important for people to hit retirement age free from money worries, and with the ability to continue the lifestyle they have become accustomed to.
“The solution lies in having a plan and knowing the amount they need to put away each month. This way, working in retirement can remain a choice, rather than a necessity.”