For how long do you want to keep working?

4th July 2013

New statistics show full retirement is being delayed for many.

Not quite what they seem

Nearly one in ten of the over 65s are still working.  However, according to the Office for National Statistics (ONS) the profile of this group is distinctly different from their younger counterparts:

  • There are nearly twice as many men as women – 13.1% of men aged 65+ are working against 6.8% of women.
  • 66% of the 65+ workforce is in part-time employment (25% for the under-65s)
  • About 33% of the 65+ workforce is self-employed (13% for the under-65s).


One simple reason for the increase in absolute numbers is that the 65+ population is itself increasing. The removal of 65 as a statutory retirement age will also have helped boost the pensioner workforce.

So far the changes to State Pension Age (SPA) are only affecting women: it will not be until 2019 that SPA starts its two year phased increase to 66 for all. Nevertheless, the ONS did note that the number of ‘economically inactive’ people who had retired before 65 has fallen by about 6% on a year earlier, a decline ONS ascribed to the increase in women’s SPA.

The part-time/self-employed bias of the 65+ employment suggests that much of the effort is directed at topping up pension income. Although the generation retiring now is often considered to be the lucky one, blessed with long-term membership of final salary schemes, this is an over-simplification. Even in the last century, final salary pension schemes were confined primarily to larger employers.

We believe that our clients should aim for a Life/LifeTM balance; doing the things you enjoy today, without compromising your future lifestyle.  In our experience many of our clients enjoy what they do at work and would be happy to continue beyond their state pension age; although preferably out of choice rather than necessity.  So while it doesn’t matter what age you want to stop work, when you do so you will need sufficient savings (in pensions or other investments) to fund the lifestyle that you want.

Please contact us if you are interested in developing a Financial Plan that will help you achieve financial independence and create your own Life/LifeTM balance.