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Age is relative. We are told that 60 is the new 40, and we read stories about how people are finding a new lease of life in their later years.
This may be because people are adapting to living for longer.
The Office for National Statistics has recently released figures revealing that people are living for longer. It has been suggested that the number of centenarians is due to rise from 14,000 in 2013 to 111,000 in 2037. That’s a lot of old people.
This longevity and the fact that the government has rescinded the default retirement age, means that people can carry on working for as long as they want to. According to research, more people than ever are delaying retirement.
This research reveals that a third of over 50s expect to delay their retirement. This is compared to a quarter of individuals during the previous year. That equates to a 15% increase.
The ONS have also re-established the popular belief that women outlive men. There are now 77,000 women expected to become centenarians in 2037, compared to 34,000 men. This appears to be reflected in the 16% increase in the number of women delaying retirement, compared to a 6% increase in men.
In regards to work satisfaction, the careers that are seeing more employees staying on past retirement are trade work, office work and health and care work. And in terms of location, it is the South West rather than the South East where people are working for the longest.
It is questionable whether people are staying on due to financial reasons, or the simple fact that they want to carry on their career. When asked about their feelings on working past the age of 65, 31% of men and 29% of women say they have come to terms with it.
Once you do make the decision to retire, there is the question of income. If people are working for longer, they will be accumulating more funds to use. One of the most popular ways to make the most of your pension pot is through an annuity.
However, it has been brought to light that a number of retirees are not making the most of this additional funding. Research reveals that a mere 35% of over 50s plan to shop around for their annuity.
Annuities have recently come under scrutiny in a study conducted the Financial Services Consumer Panel. The study revels that many annuity providers have hidden charges that are not made clear to consumers due to a lack of transparency and the overuse of jargon.
These findings correlate to the people that bought an annuity over the past last two years. Only 60% of these individuals admit to shopping around for the best deal.
If you are planning to work for longer, and by doing so accrue a larger pension pot, it is imperative that you get the best deal to ensure you get the best income during your retirement.