How is time spent in retirement?
With people today living longer than ever before, retirement could last 40 years. It stands to reason that such a long period of time deserves some consideration. According to YouGov's report Understanding Pensions and Retirement 2014, 42% of respondents think about how to spend their time in retirement, but only 16% think about it a lot.
Retirement ambitions vary, but almost half of the respondents over the age of 55 intend to continue working to some degree. Interestingly, this isn't always to alleviate money worries - those with a pension had more interest in continuing to work than those without, and the desire to remain in the workforce was higher in those with larger incomes. Almost a quarter of respondents said it would be financially essential to keep working, but 30% said they would work to supplement their retirement income.
This suggests that people want to keep working for a number of reasons, rather than solely because they need the money. In fact, nearly a quarter of respondents admitted they will miss the sense of purpose their job gives them, and the same number were concerned that having time to kill would leave them bored. It therefore doesn't come as a surprise that nearly a third of respondents plan on working part-time, and nine per cent even want to start their own business.
The majority of respondents did not want to continue working, though. This is in keeping with a point of view that retirement offers a point in life when time is your own, where you are free to enjoy hobbies and pursue interests. It's no surprise then that travelling is the main retirement ambition for half the respondents:
Travelling and spending time with friends and family are popular options for retirees, but it also appears that the retirement landscape is changing: rather than retirement being a cut-off point where work stops immediately and permanently, there seems to be an upswing in a gradual retirement, where people continue to work either with reduced hours or by starting a small business to give them the desired control over their hours and earnings.
Whether people work or pursue activities in retirement, what's important is that remaining in work is a choice and not a necessity because of improper retirement planning. One of the best ways of being prepared for retirement is by having a pension review, which will inform you of your pension size, growth and fees, so you know what to expect when you give up work.
Will you continue to work, or are you looking forward to other things in retirement? Let us know with a comment below.
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The details provided in this article are for general information only and are in no way deemed to be financial advice. All of the material is correct as of the publication date, but could be out-of-date by the time you read the article. For our latest information and news, please see our articles section: https://www.portafina.co.uk/whats-new
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