Nearly two thirds (62%) of those who had planned to retire in 2011 would consider postponing their pension and continuing to work in order to boost their retirement income, according to Prudential’s Class of 2011 research.
This figure has increased since last year when 57% of those questioned said they would consider continuing to work in return for a higher retirement income.
Of those considering putting off their retirement, 46% say they will definitely have to continue to work in order to supplement their pension or build up their savings further.
The findings highlight the growing trend for part-retirement in the UK as pensioners face up to the reality of funding a far longer period of retirement.
Of those initially intending to retire in 2011 but now planning to continue working, 53% say they would like to stay with their current employer – either working part-time or full-time – while 11% plan to seek part-time work with a new employer.
The results also show 32% of those due to retire in 2011 would consider working for up to another two years if it guaranteed them a greater retirement income.
More than one in five (22%) would work for another two to five years, while nearly one in ten (8%) would be prepared to work for five to 10 more years to boost their retirement pot.
Vince Smith-Hughes, head of business development for pensions at Prudential, said: “The only realistic option for people who want to avoid having to continue to work beyond the traditional retirement age, is to save more and to start saving earlier.
“Seeking advice from a financial adviser should be a prerequisite to ensuring they achieve the level of pension income they want and need.
“Since 2007, studies by Prudential have identified part-retirement as a growing trend – a trend that looks set to continue in 2011. This year will see the phasing out of the default retirement age, making it easier for those wishing to stay on at work.
“Additional retirement income is also becoming more important as the security of a defined benefit (DB) pension scheme disappears for many people.
“The reality is many people do not see continuing to work as a disaster, many enjoy the social and intellectual challenges of work. Those choosing to stay at work will do so partly to supplement their retirement income but also to keep themselves occupied and mentally active.”
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