A quarter of UK adults expect to ‘never really retire’ while half doubt they’ll achieve a ‘hard stop’ retirement, according to Phoenix Insights.
According to the latest research from Phoenix Insights, while ‘hard stop’ and ‘transitional’ retirements have been common over the past 50 years, only 15 per cent of UK adults believe this will continue in the next 10-25 years.
Around 41 per cent of UK adults predict an increase in the number of people who will never truly retire, up from 13 per cent previously. The most expected retirement experience is a transition period during which work hours are gradually reduced.
The survey also shows a discrepancy between retirement hopes and expectations: 44 per cent hope for a ‘hard stop,’ 47 per cent for a transitional period, and 9 per cent aspire to continue working.
But only 30 per cent expect a ‘hard stop,’ 46 per cent foresee a transition, and 24 per cent anticipate continuing to work. Among those yet to retire, only 52 per cent of those hoping for a hard stop realistically expect it, while 19 per cent think they will have to keep working.
Phoenix Group head of public engagement and campaigns Catherine Sermon says: “The idea of a ‘hard stop’ retirement has long been superseded by people looking to reduce their working hours and gradually transitioning into retirement, many working part-time while drawing on some of their pension to supplement income. Moving forward, however, while a gradual transition into retirement is expected to remain popular, our research suggests a sea change is looming, with a significant rise in people anticipating they will carry on working throughout their life.
“It’s vital that this changing approach to retirement is matched by how people are supported in work and saving throughout their life. There will need to be more flexibility so people who want or need to remain in work for longer are able to do so. This should go hand-in-hand with policy change to help people save more.
“Millions of adults are off track and not saving enough to provide the retirement income they expect and may end up delaying their retirement plans as a result. Increasing the minimum auto enrolment contribution rate being made into workplace pension should be a high priority in the next Parliament to help close some of pension savings gap.”