Government research reveals change in retirement plans

The way that people plan to spend their retirement is changing, according to new government research; it was revealed that almost 50 per cent of over 50s plan to continue working between aged 65 and 70.

Nearly 60 per cent of people aged over 50 said that they no longer agreed that working full time and then stopping for retirement was the best way to retire, whilst only 17 per cent of those surveyed said that working full time then stopping working was preferable.

The research was conducted by Dr Ros Altmann, who works as a Business Champion for Older Workers. The results reveal the ways that retirement plans are changing and the problems faced by older workers when making preparations.

Dr Altmann said: “Millions of over 50s have changed their retirement plans in recent years, and now expect to retire later – clearly later life working is very much more important to people than before.

“It is clear that many older people no longer see retirement as turning their back on work. They want to work longer, but shift the pace while still making the most of their skills.

“What’s great is that more employers are now getting the message that older workers can have a valuable role in business, particularly as they increasingly represent their future customers and workforce.”

More than 2,000 retired and non-retired people aged over 50 were surveyed to reveal that traditional retirement plans have become dated and are no longer relevant to the changing interests and desires of older people in the UK.

Of those questioned, almost 40 per cent of over 50s agreed that working part time or working flexible hours before retirement would be the best way to stop working and 25 per cent of people said that taking some time off and then returning to work was preferable to retirement. One third of older people aged 70 and over who were still working said that they did so because they enjoyed it.

Minister for Pensions Steve Webb said: “How we all look at retirement is changing and the way in which government and business help older workers needs to keep up with the times. We are making giant steps in improving this support with almost 250,000 more people aged 50 to 64 joining the labour market over the last year and over a million workers aged 65 and over now in work.”

The study also revealed that almost one quarter of workers over 50 felt as though they were viewed ‘less favourably’ in comparison to young workers and 15 per cent said that they had experienced discrimination because of their age in the workplace.

In contrast, more than half said that they felt as though they were viewed equally ‘as favourably’ as young workers. Furthermore, more than 40 per cent admitted that their confidence was affected by their age when applying for jobs as they felt that employers would not be interested in employing them and 23 per cent felt that their skills were no longer current when applying for jobs.

The study further revealed that there was a desire to learn new skills, with almost half of people surveyed expressing an interested in attending training courses to enable them to work longer.

The Government plans to introduce a project where older workers will be invited to visit Jobcentres across the UK to help reduce age discrimination in the over 50s. The initiative will provide older workers with digital support, allowing them to get online and contact businesses with available vacancies.

Mr Webb added: “The results show there is no single view of retirement any more, but the message from older workers is clear; employers need to keep up with changes to society and we have to ensure over 50s have the skills in place to continue developing their careers throughout their working lives.”