Changing face of retirement for Class of 2013

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Nearly a quarter (24 per cent) of people planning to retire this year say
they don’t feel ready to stop work yet, and more than a fifth (21 per cent)
say they don’t like the idea of being at home all of the time in retirement,
according to new figures* released by Prudential.

Its Class of 2013 research, the latest of the annual studies conducted by
Prudential since 2008, tracks the plans and expectations of people entering
retirement this year. The report reveals a positive shift in attitudes
towards retirement, despite the fact that it can be a financially
challenging time for many.

Nearly six in ten (57 per cent) of people preparing for retirement this year
say they would consider working past the State Pension Age, with two fifths
(40 per cent) of those wanting to work in full-time employment and three
fifths (60 per cent) considering working part-time.

This motivation for continuing to work on is not just financial. More than
half (55 per cent) of those considering working past State Pension Age
believe it would keep their minds and bodies active and healthy, compared
with 40 per cent who are motivated by boosting their retirement incomes.
Almost as many (38 per cent) say they would be happy to work on simply
because they enjoy working so much.

Even when they do stop working, the Class of 2013 does not intend to slide
gracefully into old age. Nearly a third (31 per cent) are looking forward to
retirement, with 52 per cent planning to undertake more physical activity,
29 per cent planning to take on more mentally challenging tasks, and 33 per
cent planning to socialise more.

Stan Russell, Prudential’s retirement income expert, said: “In the past,
people went from being in full-time employment one day to being retired the
next. Retirement is much less of an event these days due to flexible working
behaviours, and this is reflected in the attitudes of the Class of 2013.

“Retiring at 60 or 65 years old is no longer a financial reality for many
people, and the phased changes to the State Pension Age acknowledge this is
the case. Some people do not want to retire at all, while others are happy
to retire as early as possible.

“While feeling healthy and happy is part and parcel of enjoying retirement,
it is important for people to enter this period of their lives with their
eyes open. Expected retirement incomes are at a six year low, and so it is
important to plan ahead – and consult a financial adviser or retirement
specialist – to ensure a comfortable retirement.”

Prudential’s research shows that the ideal employment scenario for those who
would consider working past the State Pension Age is to continue working in
their current jobs but with reduced hours. Thirty per cent would prefer to
work in their current job part-time, while 10 per cent would happily
continue to work in their current job full-time.

Nine per cent of those expecting to retire this year, and who would consider
working on, would like to earn money from a hobby, while six per cent would
ideally like to start their own businesses.