Aegon emphasises the need for a significant reassessment of life after 50, citing unprecedented changes that call for a multi-staged approach to retirement and greater support from the government and employers.
Aegon’s research, ‘The Second 50: Navigating a Multi-Stage Life,’ highlights key differences between today’s over-50 demographic and earlier generations. It explores five interconnected areas: work, wealth, family, health, and wellbeing.
Only 27 per cent of people who are now employed, according to the report, anticipate a “hard stop” retirement. Only 25 per cent of those in the 50 to 59 age group have included future social care costs in their retirement savings plans, although anticipate spending around a fifth of their later years in poor health.
Most people over 60 have good primary incentives for continuing to work into later life, according to Aegon’s research. These include the want to keep their mental acuity at 54 per cent and the desire to enjoy their employment at 57 per cent.
According to Aegon, employers and the UK government both have important roles to play in promoting a longer and more varied working life for the UK population.
Aegon pensions director Steven Cameron says: “As we see record numbers of people in the UK celebrating their 100th birthday, we want to start a conversation about how varied people’s second 50 years may be and to help people better understand and navigate them. For many, seeking financial advice will be of particular value.
“The Second 50 is a new phase of life that is vastly different to the prospects our parents and grandparents had when they reached age 50. There are millions of combinations of circumstances and situations that people over 50 may find themselves living through at various times and in different orders, meaning everyone’s Second 50 is truly unique.
“In fact, in many ways, it’s uncharted territory. We can no longer simply look to what’s gone before to know how to manage it on behalf of clients. Our report picks out five fundamentals to consider as you help your clients navigate this journey.”
Cameron adds: “We want to explore the Second 50 not just with individuals, but with employers, the financial services industry and government, to create a landscape that is truly fit for purpose for everyone’s life after 50. Advisers will bring huge value in navigating that landscape.
“Whether it’s employment and pension law or the State Pension, the Government has the responsibility to support and the power to shape people’s Second 50. For example, we’d like to see the Government offer more flexibility around when people can access their State Pension.
“In addition, employers play a vital part in life after 50 by offering flexible working, training, and support at all ages, and by harnessing the skills and expertise of those who wish to continue working for longer. Meanwhile, workplace pensions can help build the financial support needed by employees in later life.”
