2 Out Of 3 Work on At State Pension Age

2 Out Of 3 Work on At State Pension Age.

Research from LV= that 1 in 3 have fully retired when they reach State Pension Age.

The figures show that many people taking retirement benefits are still active in the workplace when they take some pension benefits at retirement or indeed are going the other way at State Pension Age and postponing retirement benefits.

Phased retirement is becoming more popular, with 2 in 3 people now doing this.  Why is this?

• If people are working, do not see the need to take pension income that is also taxable.
• If people do not take there pension benefits there may be better death benefits for their loved ones if they prematurely pass away.
• Retirement flexibility products are more common now and easier to access following the March 2014 Budget
• Some people simply cannot afford to retire.
• Others are fearful of becoming inactive which means your body and mind may slow down.
• There is an increasing movement of people becoming entrepreneurs in later years meaning that they work on with an interest.  So called "grand-preneurs".

Comment

35% of people now are phasing retirement (source LV=).

We see phasing as a natural progression.  We are living longer and State Pension Age is being gradually increased.  Likewise, 'gol plated' defined denefit and salary related pensions are less common, unless you work for local or central government and public services.  People simply need more more from there private pension pots, but with annuity rates being so low, it is financially difficult for many to retire.

If you would like help planning your full of phased retirement, contact us.