Times are changing and old ways of approaching retirement are evolving.
The traditional approach to retirement, where workers go from their usual work pattern to full retirement all in one go, is now favoured by less than a third (31%) of workers.
A survey of over 1,000 workers by Aegon found that nearly half of those over 50 who earn more than £20k would favour a phased approach to retirement, by gradually reducing their hours for a period of time, before finally transitioning into full time retirement.
The traditional approach to retirement, the so called ‘cliff edge’, where workers go from their usual work pattern to full retirement all in one go, is now favoured by less than a third (31%) of workers over the age of 50.
Among those that would like a phased approach, as many as 70% indicated that the ideal adjustment would be working fewer days. 44% preferred reducing the amount of hours they worked each day instead. 33% wanted more flexible working arrangements.
The survey shows the general shift change in approaches to retirement as people live for longer and wish to also work for longer, albeit with different working patterns and hours.
Many over 50s see this approach as the best of both worlds, where they can benefit mentally, socially and financially from work but also enjoy more leisure time or support their children with grand-parental childcare.
Steven Cameron, Pensions Director at Aegon, which provides life insurance, pensions and asset management, said: “Our research shatters the concept that retirement is a single-day event. Time has run out for ‘carriage clock’ retirements. Those approaching retirement want a fluid transition, and it’s not only the individuals who’ll benefit. Enabling individuals to remain economically active into later life is also good for employers and the broader economy.”