Client
Portal

Postponing retirement

Back to News & Views

An increasingly growing trend in Britain

Recent studies indicate that approximately half (49%) of non-retired Britons plan to extend their working lives beyond the age at which they'll receive their State Pension[1], equivalent to approximately 19.2 million individuals[2]. 

Those contemplating working post-State Pension age anticipate doing so until they're 72 on average, a rise from the projected 70 years in 2022[3] when similar research was last undertaken.

Motivations behind the decision

Financial stability is the primary motivation for many to continue working past the State Pension age. More than a third (36%) feel their pension won't cover their daily expenses; worryingly, over half (52%) of this group are aged 55 or above. Almost a third (30%) express concern about the ongoing cost of living crisis, while 29% are uncertain about the longevity of their savings.

Nevertheless, there are non-financial reasons as well. A considerable 23% of respondents appreciate the routine work provided. Additionally, 20% genuinely enjoy their job, and 18% admit they're unprepared for retirement.

Aftermath of the decision

For those considering extending their working life, 51% intend to retain their current or similar roles. However, this decision does not come without concerns. About 34% fear that continuing to work will impact their ability to enjoy their later years. One-third (33%) are apprehensive about potential health deterioration due to prolonged work, and a quarter (24%) worry about missing quality time with their families.

As workplaces become more technologically advanced, 18% of those planning to work post-retirement express concerns about keeping pace with these rapid changes. However, it's crucial to note the immense value older workers bring. Their experience, resilience and insight can greatly benefit younger colleagues and their organisations.

Role of employers

Regardless of the reasons for working beyond the State Pension age, employers have a crucial role to play. They must foster an inclusive culture that respects and understands the evolving needs of their older employees.

The rising cost of living forces many to rethink their retirement plans, leading to an increasing number contemplating work beyond their State Pension age. While this may not be a welcome prospect for those who need to work to make ends meet, the positive aspects of working should not be disregarded.

Advantages beyond retirement

Benefits and perks play a pivotal role in the decision-making process for employees when considering job opportunities. These incentives can often be the tipping point that convinces an individual to accept a job offer. A study revealed that 34% of British workers have been persuaded to take on a position due to a compelling benefits package or company policy[4].

When inquiring about the most useful provisions employers could provide for those choosing to work past their State Pension age, income protection was the clear winner, with 45% of participants highlighting its importance. This was closely followed by critical illness cover (39%) and life insurance (38%), indicating the significant value placed on financial security in potential health-related situations.

Rehabilitation services are an essential consideration

Interestingly, one quarter (24%) of participants considered access to a rehabilitation service – a service designed to facilitate a return to work following a serious illness – as the most beneficial offering. This insight emphasises the importance of supportive measures that help maintain productivity and wellbeing during challenging periods.

This highlights why it is incumbent upon employers to create a culture where their mature workforce feels enabled and comfortable to extend their working lives. Achieving this requires a thorough understanding of the unique needs of their employees, which can fluctuate based on their stage in life.

Key to employee support

Providing relevant benefits such as group life, group income protection and group critical illness cover – benefits that usually come with additional support services – is a straightforward yet effective strategy for employee support. By tailoring these benefits to meet the specific needs of older workers, employers can foster a sense of security and inclusivity.

The importance of benefits and perks for employees working beyond their State Pension age cannot be overstated. Employers can attract and retain experienced talent with the right blend of benefits, thus ensuring a diverse and resilient workforce.

It’s good to talk

Whether you're an employee looking to safeguard your future or an employer aiming to provide the best support for your people, we're here to help. Don't hesitate to contact us. Together, we can find the solution that caters to your unique needs and circumstances.

Source data:

[1] Survey conducted by Opinium for Canada Life among a national representative sample of 2,000 UK adults between 10 – 14 November 2023.

[2] Questions asked to a subset of UK adults under age 66 who have not yet retired.

[3] Survey conducted by Opinium among a national representative sample of 2,000 UK adults between 21 – 25 October 2022.

[4] Survey conducted by Opinium among a national representative sample of 2,000 UK adults between 11 – 15 August 2023

THIS ARTICLE DOES NOT CONSTITUTE TAX OR LEGAL ADVICE AND SHOULD NOT BE RELIED UPON AS SUCH. TAX TREATMENT DEPENDS ON THE INDIVIDUAL CIRCUMSTANCES OF EACH CLIENT AND MAY BE SUBJECT TO CHANGE IN THE FUTURE. FOR GUIDANCE, SEEK PROFESSIONAL ADVICE.

A PENSION IS A LONG-TERM INVESTMENT NOT NORMALLY ACCESSIBLE UNTIL AGE 55 (57 FROM APRIL 2028 UNLESS THE PLAN HAS A PROTECTED PENSION AGE). 

THE VALUE OF YOUR INVESTMENTS (AND ANY INCOME FROM THEM) CAN GO DOWN AS WELL AS UP, WHICH WOULD HAVE AN IMPACT ON THE LEVEL OF PENSION BENEFITS AVAILABLE. 

YOUR PENSION INCOME COULD ALSO BE AFFECTED BY THE INTEREST RATES AT THE TIME YOU TAKE YOUR BENEFITS.

Book your FREE, no obligation discussion today. Schedule Appointment

Sign Up to our mailing list - Receive regular news, tips and financial commentary from the Gemini Team.

Latest News

  • Inheritance Tax (IHT) represents a significant consideration for anyone looking to pass on assets to the next generation. As of the 2024/25 tax year, IHT incurs a 40% charge on the portion of an estate exceeding the nil rate band of £325,000, excluding transfers to a spouse or registered civil partner. Additionally, introduction of the main residence allowance in 2017, offering an extra £175,000 relief when a primary residence is bequeathed to direct descendants or where an individual has moved into a care home, enables individual allowances to reach £500,000 before IHT applies cumulatively. [...]

  • Individual Savings Accounts (ISAs) offer a versatile and tax-efficient way to save for the future, whether for yourself, your children or grandchildren. Now that we have entered the new financial year, on 6 April 2024, significant changes to ISAs have been introduced. [...]

  • As we embark on the new tax year, it presents an opportune moment to review your pension savings strategy, setting a solid foundation for future financial stability. Early attention to your private pension at the onset of the fiscal year is not just about cultivating beneficial saving habits; it’s also about ensuring you fully exploit the benefits and allowances available to you. [...]

  • The financial implications of care in later life are often underestimated, leaving many unprepared for the substantial costs associated with care homes. Establishing a thorough wealth strategy is key to ensuring financial readiness for long-term care needs. In England, individuals with assets exceeding £23,250 are currently required to self-fund their care home expenses. However, a new government proposal aims to introduce an £86,000 lifetime cap on care fees starting from October 2025, designed to simplify care fees planning and potentially reduce the financial burden on individuals. [...]

  • Recent research has uncovered that a staggering 51% of adults in the UK have neither penned a Will nor are they in the process of doing so[1]. This statistic encompasses 13% of individuals affirmatively declaring no future plans to undertake this task. Alarmingly, a significant portion of the older demographic, with 30% of those aged 55 and above, also finds themselves without a Will, including 9% who have decisively chosen not to create one. The primary deterrent for many is the perception of insufficient assets or wealth, cited by 26% of respondents, indicating a widespread misconception about the necessity of a Will. [...]

  • For investors, the perennial question of whether to ‘stick or twist’ with their current investments or pivot towards the perceived safety of cash is fundamental. Numerous factors influence this decision, which plays a pivotal role in the journey towards financial prosperity. The appeal of cash, particularly in uncertain times, is clear; however, a judicious choice to remain invested frequently emerges as the more astute strategy. [...]

  • Recent research findings have brought to light a striking observation: fewer than 10% of adults in the UK contribute occasional lump sums to their pensions[1]. This statistic is particularly surprising given that such contributions could significantly amplify one’s retirement savings. [...]

  • A recent study suggests that a substantial proportion of Generation Z, born from 1996 to 2010, view property acquisition as their principal avenue to amass wealth for their retirement years [1]. This perspective is slightly more prevalent within this demographic than the reliance on pensions, with 33% of Gen Z individuals planning to utilise property as a retirement fund compared to 30% who favour pensions. [...]

  • In an era where the lines between work and personal life are increasingly blurred, a new study sheds light on a concerning trend among UK employees. Despite advancements in workplace policies and a growing emphasis on mental health and wellbeing, a significant number of workers are still pushing themselves to work even when they are not in full health. [...]

  • A recent study reveals a promising trend among 45- to 54-year-olds in the UK[1]. Six out of ten individuals in this age group are actively working towards bolstering their retirement savings[2]. These mid-lifers are prioritising their future financial stability, implementing changes in their current spending habits to ensure they can support themselves later in life. [...]

  • 3 weeks ago

    For employees, auto-enrolment is a crucial component to consider in their retirement strategy. Understanding auto-enrolment becomes critical as we increasingly understand the need for adequate retirement preparation. Historically, while some companies offered their employees the chance to contribute to a pension fund for retirement preparation, others did not. [...]

  • A Self-Invested Personal Pension (SIPP) is more than just a pension. It’s a gateway to financial freedom that can offer you an unparalleled level of control. With a SIPP, you are at the helm of your investment decisions, determining how your money is invested and your pension pot grows. Whether you make regular contributions or occasional lump-sum deposits, even a modest start can significantly impact your retirement nest egg. [...]

Gemini Wealth Management Ltd is Authorised and regulated by The Financial Conduct Authority Registered in England & Wales No. 5919877 Registered Office: Gemini House, 71 Park Road, Sutton Coldfield, West Midlands B73 6BT The Financial Conduct Authority does not regulate tax and trust advice, will writing and some forms of buy to let mortgages. The guidance and/or advice contained in this website is subject to regulatory regime and is therefore restricted to those based in the UK.

Website by Mellow Marsh Software
© Gemini Wealth Management Ltd
Important Documents | Cookie Policy