Phased retirement requires pensions rethink

16303503_b018d1f173_oMore than half of those over 55 in the workforce are happy to work past the age of 65 according to research by an insurance firm.

A study by MetLife found 54% of those over 55 and currently in work would like to work beyond default retirement age. However, one in four want to reduce their hours and work part-time.

It said changes will be needed in retirement income solutions to enable people to adapt to new working patterns and reductions in income. Solutions could include the use of deferred income guarantees enabling savers to plan ahead for retirement, guaranteeing a level of income.

The research was commissioned as part of Dr Ros Altmann’s report ‘Pensions – Time for change’. MetLife said it underlines the need for new thinking on pensions, which have not kept up with improvements in life expectancy and national health.

Dominic Grinstead, managing director, UK, MetLife said: “As life expectancy is rising and working lives are getting longer, the demands on retirement income have evolved and the demand for part-time working reflects that. New living patterns require retirement income solutions that offer flexibility to ensure sufficient income will be provided in later life.

The research shows those aged 55+ who want to carry on working full-time overwhelmingly want to stay with their existing employer – more than 90% say they want to continue in their current job. However those who want to work part-time are more likely to switch to a new employer – nearly 60% would move to a new part-time role.

Image credit: http://www.flickr.com/photos/hillsdalehouse/

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Categories: News, Part-time, Retirement

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