The UK doesn’t imagine itself well-off enough to retire, suggests research by market research company, SurveyCompare.
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Online PR News – 28-September-2012 – London, UK – The UK doesn’t imagine itself well-off enough to retire, suggests research by market research company, SurveyCompare.
The current retirement age is set to rise for both men and women in the coming years. 2020 will be the first year when people have to be at least 66 before they can claim their state pension, and this is set to rise even higher, to 68. Medically speaking this means senior citizens who are no longer at a healthy ‘working age’ will be expected to work. The healthy working age for men is 63, and for women it’s 65.
However, research carried out by SurveyCompare on two thousand people across the UK, suggests that only 19% of women and 24% of men expect to actually stop working at the official age of retirement. The biggest single reason given by survey respondents for not retiring was financial: they may not be able to afford stopping work. Of the people who thought they would continue to work, around half felt they would remain with their current employer in either a full or part-time capacity, and the other half believed they would find a new employer or work on a self employed basis.
Currently, the employment rate in the UK is 71%, which suggests finding employment over the state pension age may prove to be a challenge for the older generation, when younger candidates are in competition for jobs. This challenge is reflected in the research data, which shows almost twice as many people over the age of 55 are interested in taking up self employment when they become pensioners compared to people aged 18-24. This older age group is the least likely of all the groups questioned to think they will stay with their current employer, yet only 3% think they will be able to find work with a different employer.
These findings may suggest that the over 55s are therefore more aware of the various options available to people approaching retirement, self employment offering perhaps the greatest post retirement work opportunity of all, as it doesn’t require finding a new employer - just new clients.
Interestingly, almost 40% of people who are currently working in two or more jobs (and have already experienced the benefits of self employment) intend to continue with self employed work once they retire.
Retirement plans by education and age
A surprisingly large proportion of people interviewed do not know what their next step will be at retirement age. Whilst it is somewhat understandable that 50% of under 18s questioned fall into this category, this figure only drops to 40% in the 35 - 55 age bracket. Education levels are also shown to have a bearing on people's thoughts on the matter, with graduates fifty percent more likely to stay with their current employer than people whose education ended at GCSE level (or equivalent). The graduate group are also the most likely to consider entering into self employment when they reach pensionable age.
The current earnings of survey respondents also seem to influence the retirement choices made, as generally speaking the more a person earns, the more likely they are to be interested in self employment in retirement. Across all wealth segments questioned, a significant proportion of people didn't have retirement plans, with almost 65% of people earning between £75,000 and £100,000 per annum having no retirement plans whatsoever.
Self employment in retirement - supplementing your pension
Being self employed in retirement offers not only financial benefits but also other advantages, as expressed by those who don't wish to stop working completely. These include still using one's personal experience and skills, or avoiding stagnation. Increasingly, people are choosing to work from home as it offers them the flexibility to work around their other commitments, giving themselves a chance to enjoy retirement whilst removing many of the inconveniences of working, such as commuting or the costs involved in working. Providing one has an internet connection, it is easy to work from home to earn extra income and supplement one's pension.
Planning ahead -
When asked about what her research shows, Agnese Geka from SurveyCompare replied, “Whatever your plans are for retirement , the sooner you decide what these are, the better. We’ve found that the transition into retirement will be much more enjoyable once you have found a working solution that suits your needs.”
According to Geka it’s a question of economics and planning. She continues, “The UK and global economies may continue to struggle for a number of years yet, and a large number ageing baby boomers will be competing for post-retirement jobs in the future, so giving yourself time to plan and even begin an additional career in your spare time will put you in the best possible position.”
SurveyCompare brings together the best market research companies which offer paid online surveys and other work from home opportunities.