According to new research by Canada Life, two out of three people are now resigned to working beyond the traditional retirement age of 65.
66% of those surveyed by Canada Life said they would need to keep working past age 65 in order to fund their retirement.
A number of factors are driving this need to work later in life.
Rising life expectancy has seen a person live for 14 years longer on average since the middle of the last century.
Lower gilt yields, driven down by quantitative easing, means a lower pension income for those converting their pension using an annuity at retirement.
This means that accepting a lower income in retirement, working for longer to save more (and reduce the time spent in retirement) or a combination of the two is becoming inevitable for millions of people reaching retirement.
The notion of a tradition retirement, where we stop work for good at 65, is rapidly being replaced with a more flexible approach to retirement.
For many of the clients who come to us for advice on their retirement income options, this can mean a spell of part-time work or consultancy, phasing into a more permanent state of retirement in their 70s.
Avoiding this eventuality is a question of good Financial Planning. The earlier this can take place, the better.
The earlier you start saving for retirement, the less you need to save because you have time to invest more and this money is invested for longer, generating higher levels of compound returns.
Even those in the decade before their intended retirement date can take steps to boost levels of retirement income. Advice is essential at this stage.
Do get in touch to find out more about living the retirement you want, avoiding the work until you drop approach and taking control of your Financial Planning.
