Giving up the 9-to-5 doesnot necessarily mean giving up work. Many people are now choosing a staggered or flexible working path. It can suit some people who have care responsibilities or perhaps health issues, or those thinking about retiring in the next couple of years.
When you imagine yourself in your later years, do you see yourselfsat on a beach? Are you hitting the golf course or are you working at a desk? For many people of retirement age, continuing work makes perfect sense for them.
Several decades ago, working and retirement were specific terms, with little room for flexibility. People were either working (and under the age of 65) or had reached the age of 65 and were already retired. That’s no longer true, however, as staggered retirement is becoming increasingly more popular and much more common.
Few people benefit from the sudden switch from working five days a week to point-blank not working at all. Retirement can often be a strange period, and it’s not surprising given that the most common path into retirement is to go ‘cold turkey’ and quit working.
New research suggests the fact that fewer people are deciding against completely stopping working and are instead opting for a staggered and more flexible retirement and working part-time. Nearly one in three pensioners in their 60s and 16% of over70s haven’t touched their pensions.
Of those who havenot touched their pension pot, nearly half (48%) of those in their 60s, and 24% over 70s, say it is because they are still working. With people living much longer, and the added prospect of health care costs in later life, retirees increasingly understand the benefits of having a larger pension pot in later life.
Of course, retirees who haven’t touched their pension pot must have alternative sources of income. When questioned about their income, nearly half said that they take an income from their cash savings, others rely on their spouse or partner’s income (35%) or their State Pension (22%), while 12% rely on income from other investments, such as property.
This trend for staggered retirement offers lots of financial and health benefits. It is often taken for granted, but good health is one of the very best financial assets people can hope to have. The benefits of working – such as remaining physically active and the continuation of social interaction – can make a huge difference to people’s mental well-being and overall health in retirement.
People are increasingly making alternative choices about their retirement to make sure that they don’t run out of money, but it is also vitally important to make pension savings work past retirement age, so you don’t miss out on the ability to generate growth above inflation for when there is the requirement to start drawing your pension.
Looking for interconnected retirement planning?
The retirement journey paves the way to interconnected retirement planning rather than product-based solutions. Simply put, in order to get the best outcomes, it is necessary to have a retirement strategy to give you choices and greater flexibility. If you would like to discuss your retirement plans, we’re recommend seeking out the help of our trusted financial advisers.