More than half of over-55s are happy to work past retirement age

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The default retirement age of 65 is not putting off the over-55s from working, as over half of them are happy to stay employed past this age, a survey has found.

Fifty four per cent of more than 2,000 over-55s working in the UK want to keep working when they get to 65, MetLife’s study revealed. However, one quarter wants to reduce their hours and work part-time, either in their current job or with a new employer.

The majority of those who want to work part-time are more likely to switch to a new employer (60%). However, 90% of those who want to carry on working full-time are happy to stay in their current organisation, according to the report, which was commissioned as part of pensions expect Dr Ros Altmann’s report ‘Pensions – Time for Change’.

Dr Altmann’s report highlighted how retirement and pensions have not kept up with improvements in life expectancy and national health.

Equally, the majority of people are not taking or getting the advice they need on pensions. According to MetLife’s study, just 29% of respondents say they have taken financial advice and 19% say they regret not taking advice on their retirement income planning.

“As life expectancy is rising and working lives are getting longer, the demands on retirement income have evolved and the demand for part-time working reflects that,” said Dominic Grinstead, UK managing director, MetLife. “New living patterns require retirement income solutions that offer flexibility to ensure sufficient income will be provided in later life.

“However, sound independent financial advice is central to people’s ability to make the right retirement income choice,” he added. “The government is doing its best to promote long-term savings and the industry should encourage people to look beyond traditional solutions such as annuities when appropriate.”