Half of people retiring this year plan to work past state pension age, research finds

More than a quarter of those planning to delay their retirement would like to reduce their hours and go part-time with their current employer

Prudential found a growing trend towards “pretirement”, where people scale back on work or slow their retirement plans down rather than giving up their job entirely (Reuters)

Half of people due to retire this year are considering working past the state pension age, according to new research.

Prudential found a growing trend towards “pretirement”, where people scale back on work or slow their retirement plans rather than giving up work entirely.

More than a quarter of those planning to delay their retirement would like to reduce their hours and go part-time with their employer, while 14 per cent would like to continue full time in their current role. A fifth would try to earn a living from a hobby, or start their own business.

Those retiring in 2018 expect their retirement to last an average of 20 years, the survey found.

Around one in 12 of those scheduled to retire in 2018 have postponed their plans because they cannot afford to retire. Among that group, 47 per cent said the cost of day-to-day living means their retirement income won't be sufficient.

The research also found the decision to put off retirement isn’t always a financial one. More than half of those who are already, or are considering working past the state pension age, say it is to keep their mind and body active and healthy, while 43 per cent say they simply enjoy working.

Stan Russell, a retirement income expert at Prudential, said: ‘The shift to ‘pretirement’ in recent years shows that many people reaching state pension age aren’t ready to stop working.

"Reducing hours, earning money from a hobby or changing jobs are all ways to wind down from working life gradually, and for many, to avoid boredom and maintain an active mind and body.

“However not everyone has the luxury of choosing their retirement date due to their financial situation not allowing them to give up work, and others may be forced to stop working for health reasons. Saving as much as possible as early possible in their career is the best way for people to ensure they are financially well-prepared for a retirement that starts when they wish, or need it to."