Are you a part-time pensioner? Around 1.2m people over the age of 65 are still in work…
There was a time, not so long ago, when many people’s lives fell neatly into three distinct stages – they were educated, embarked upon a career and then retired. The date at which people chose to retire was generally in line with their state retirement age, meaning 60 for women and 65 for men.
Today, retirement no longer means clearing your desk on your 60th or 65th birthday and facing a future without work and the benefits that go with it.
Increasingly, people are adopting a more gradual approach to retirement and choosing to work beyond their state pension age, slowly cutting back the amount of time they spend at work, with some even choosing completely new career paths.
‘Pretirement’, the process of gradually reducing the number of hours worked, is now a widely-accepted concept which generally begins in people’s 50s and can run into their 70s. Figures from the Office for National Statistics for December 2017 to February 2018 show that just under 1.2m people over the age of 65 were in work, and for the first time, there were more than 10m people aged over 50 in employment out of a total workforce of 32.2m.
WHY PEOPLE CONTINUE TO WORK
People adopt this approach because they enjoy the work they do, they’re fit and healthy and far too young to stop, they feel they still have something to offer their workplace, or because they need to do so to boost their retirement income.
As the nature of retirement continues to change, it’s important to have the right retirement plans in place so that you can choose the path to full retirement that suits you best. Taking financial advice in the years leading up to retirement will ensure that when the time comes, you can make the best use of your savings and pension funds and select the best retirement income solution for your circumstances.
Clifford Osborne are Independent Financial Advisors (IFA) based in Eastbourne, East Sussex, offering early retirement advice, pension advice, mortgage advice and more. Our clients often come from Uckfield, Lewes, Brighton, Tunbridge Wells, Hastings, Bexhill, Newhaven, Seaford, Crowborough and further afield.
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It is important to take professional advice before making any decision relating to your personal finances. Information within this blog is based on our current understanding of taxation and can be subject to change in future.
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The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.
If you withdraw from an investment in the early years, you may not get back the full amount you invested. Changes in the rates of exchange may have an adverse effect on the value or price of an investment in sterling terms if it is denominated in a foreign currency. Taxation depends on individual circumstances as well as tax law and HMRC practice which can change.
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