61% to work past target retirement age if savings are insufficient

Around two-thirds (61%) of UK employees plan to continue working if they have not saved enough by their target retirement age, according to research from Aegon.

Pension savings-retirement-2015

The study, which surveyed 4,000 UK adults, also found that 64% of respondents are not confident about retiring at their target age of 63.

The research also found:

  • 36% of respondents plan to continue working in their current role until they have enough saved for their retirement.
  • More than a quarter (28%) expect their employer to create a part-time or flexible role, while around one in ten (9%) expect to become self-employed.
  • Respondents in healthcare (40%), administrative (31%), and engineering and manufacturing sectors (32%) are most likely to expect their employer to create a flexible role for them, while those in the creative arts and design sector (32%) are more inclined to become self-employed and start up their own business.
  • A quarter (25%) of those surveyed are concerned about retiring later than initially planned.
  • Nearly two in five (39%) were neither confident nor concerned about retiring later than initially planned.
  • 93% of respondents are falling behind on their retirement savings.
  • 8% of those approaching the age of 55 plan to take a lump sum as they near retirement.

Angela Seymour Jackson, managing director of workplace pensions, Aegon UK, said: “Workers across the UK are waking up to the reality that they will likely have to work well past their planned retirement age to make up for shortfalls in their savings.

“With so many expecting to work on past traditional retirement age on more flexible contracts, employers will need to move quickly to accommodate this new later-life work culture.

“While there are benefits for the economy in older people staying in the workforce, it should be a matter of choice as to whether people continue working and not simply down to a lack of savings.

”For this reason it’s important that pension providers and employers engage workers early with their pension in order that they understand how on track they are with their savings.”