Around a third (35%) of workers who accessed the pension freedoms in the first month after they came into effect in April 2015 were still working at the time, according to research by Hargreaves Lansdown.
Its study, which surveyed 304 employees who drew pension benefits in the first weeks after the new freedoms came into effect, also found that of that 35%, 20% were working full time and 15% part time.
The research also found:
- More than a third of respondents (37%) who work full time plan to work part time before they stop working completely.
- 43% of respondents who made use of the pension freedoms plan to retire in the next three years.
- 43% have only started to consider drawing out their pension over the last 12 months.
Nathan Long, head of corporate pensions at Hargreaves Lansdown, said: “The pension freedoms look set to make semi-retirement the new norm. Employees seem keen to reduce their hours, while tapping their pension to replenish lost income.
“Employers must continue to look to workplace financial education to help employees understand their options and plan appropriately. Doing so will help increase engagement and allow the business get the most from the cost of the workplace pension.
“It will also help employees navigate the tricky transition from working to retirement, regardless of how long that transition might be.”