According to a new study from the Institute of Economic Affairs, retirement is bad for your health.
The study found that retiring results in a “drastic decline in health”, in both of the medium and long term.
Mental and physical health is thought to decline as a result of retirement.
What this study means is that working for longer could be good for your health, as well as your pocket.
For many, deferring retirement and working into later life is an economic necessity rather than a voluntary choice made to improve long-term health prospects.
This does of course assume that the individual is both capable of continuing to work past a normal retirement age and that work remains available.
In the current economic climate, this second condition is far from guaranteed.
We are increasingly finding that our clients are choosing not to fully retire at age 60 or 65.
Instead, a gradual phasing of retirement is becoming a more popular option. Part-time or voluntary work is often filling the time that was previously spent in full-time employment.
Retirement is no longer a one-off event for many people.
Planning for an income in retirement has become more complex as a result, requiring careful consideration of the likely pattern of retirement as well as taking into account the need for a flexible income, rather than a fixed monthly amount from outset.
As we all continue to live for longer, it is important to recognise the need to establish a larger asset base to support our lifestyles in later life.
Living for longer also means a greater likelihood of needing long term care in older age.
Not retiring is often cited as a solution for those who have failed to save for a sufficiently large enough income in retirement.
As simple as this solution might sound, the reality tends to be very different.
