Part-time working the new norm as people continue to put off taking their pension

Going part-time, changing jobs or delaying your retirement plans are some of the accepted norms of the modern ‘pre-tirement’ scene, revealed by a study into the finances and aspirations of those planning to retire in the next 12 months.

The Prudential’s latest annual study now in its eighth year illustrates that the phased or delayed retirements that were necessary for many during the financial crisis are now becoming standard.

Over a fifth (21 per cent) of people who are planning to retire this year say they don’t feel ready to stop working altogether, a figure that has remained stable since 2011 among those approaching the milestone. In fact, almost a quarter of people who are scheduled to retire this year have already chosen to delay their plans.

Working to improve finances
More than half (51 per cent) of the ‘Class of 2015’ would consider working past State Pension age to help improve their financial position. This is the sixth year in a row that the majority of those coming up to retirement have said that they would actively consider working on to improve their finances in later life.

Reducing the hours they work with their current employer is the preferred option for 31 per cent for who would consider continuing to work. Nearly one in eight (12 per cent) would like to look for a part-time job with a new employer while 11 per cent say they’re happy to carry on full-time in their current job.

Working to keep alert and active

The decision to continue working past what previous generations would have considered the ‘traditional’ retirement age, isn’t always a financial one. For this year’s retirees the most popular reason for considering staying in work, cited by 57 per cent, is to keep mentally and physically fit.

For 39 per cent it’s because they simply enjoy working, while 35 per cent say they would miss interacting with work colleagues. A third (33 per cent) don’t like the idea of being at home all the time and 23 per cent say they would miss having a daily routine.

A spokesperson said “The old image of everyone giving up work aged 60 or 65 and becoming a pensioner is a thing of the past. People are seeing the opportunity to stay at work full-time or in a period of ‘pre-tirement’ as an attractive one – whether it’s to boost their pension pots or just to stay fit, healthy and stimulated.”