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Three in five UK workers are planning to carry on working if they haven’t saved enough by the time they hit their target retirement age and a quarter expect their employer to create a flexible role for them as they get older, according to new research.
The survey of over 4,000 adults for the international life insurance, pensions and asset management company Aegon shows more than one in three plan to continue working in their current role until they have enough saved; a quarter expect their employer to create a part-time or flexible role; while nearyl one in ten expect to become self-employed.
Workers in healthcare, administrative and engineering and manufacturing sectors are most likely to expect their employer to create a flexible role for them, while those in the creative arts and design sector are more inclined to become self-employed and start up their own business.
Angela Seymour Jackson, Managing Director 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. Creating a flexible and inclusive workplace strategy won’t only benefit those working longer to hit their savings targets but, according to recent research, will also prove good for business, adding £100 billion to UK productivity.”
While the majority of people expect retirement to be a gradual process rather than a hard cut-off, the research found most still aspire to retire earlier than the state pension age – at around 63. By 2018 the state pension age will be 65 for both men and women.
Finance professionals, with the highest average pay of £38,000, expect to retire the earliest at 62, while those working in education, with a lower annual salary of £26,000, expect to retire later at 64. However, IT professionals who have the same average salary as those working in finance still expect to retire two years after their counterparts at 63. Those working in admin have a relatively low average income of £23,000 yet expect to retire relatively early compared to other professionals at 63.
People may be ambitious in their target retirement ages, but just over a third of UK workers are confident about hitting their target. A quarter are concerned about retiring later than initially planned while nearly two in five were neither confident nor concerned.