One in five future retirees to keep working

One in five (20%) people still yet to retire plan to set up their own business in retirement.

That’s according to a study by Aviva called the Voice of New Retirement, on the changing trends in retirement work patterns.

The end of the default retirement age has brought with it wider opportunities for people to work beyond the age of 65, some of which can certainly be attributed to basic need, as people find they have to work longer before they can afford to retire.

More than one in three (36%) ‘retirees’ who still do paid or unpaid work find it more fulfilling than their earlier career, while 65% of the unretired think money is the most likely factor to keep them working in retirement – but retirees who work are more motivated by feeling challenged (41%) and fulfilled (48%).

Among those who plan to continue working, only 3% have done so by setting up their own business. In contrast, one in five (20%) of the unretired want to take this opportunity, suggesting a strong entrepreneurial streak among future retirees. Volunteering or doing unpaid work also looks like it will be a more popular feature of retirement: 16% of working retirees have taken this up for the first time since retiring, but 25% of the unretired plan to do so. 

Among the reasons given for wanting to work in retirement, money is cited most often, with almost two in three (65%) citing this as a major reason to continue working.

However, among retirees who still work, just 23% feel money is one of their main motivations, with personal relationships taking on much more significance instead. More than two in three (67%) retirees identify friends and colleagues as an aspect of work they miss more than others, suggesting that it is only once people have retired that they fully appreciate the value of the social contact and personal fulfillment they took from work.

Alistair McQueen, Retirement and Savings Manager at Aviva, commented on the findings: “Working can take on a new meaning in retirement as money and having a routine establish a different importance and there can be opportunities to pay more attention to being fulfilled. Developing our innate strengths and focusing on wat we love to do are habits which are apparent among those who work in retirement, and can lead to greater contentment among those who choose to pursue part-time work during these years.”