More than a quarter of adults expect that they will “never really retire,” Phoenix Group has revealed.
According to the research, a ‘hard stop’ or ‘transitional’ retirement was seen as the most prominent way in which people move into retirement, but this was expected to dwindle significantly in the future.
In fact, only 15% of adults said that this will represent most people’s experience in the next 10 to 25 years.
The biggest change in retirement perceptions was an increase in people reporting that they would never really retire because they want, or need to, keep working.
41% of respondents expected this to be the norm in the next 10 to 25 years, up from 13% in the past.
The research also looked at hopes compared to expectations of moving to retirement.
44% of adulted hoped for a ‘hard stop’, 47% hoped for a period of transition, and just 9% hoped to keep working.
However, when looking at expectations, 30% expected a ‘hard stop’, 46% expected a period of transition, and 24% expected to keep working.
Just half (52%) of those who have still to retire who were hoping for a hard stop realistically expected to achieve it, and one in five (19%) of this group said that they would have to keep working.
Catherine Sermon, head of public engagement and campaigns, said: “The idea of a ‘hard stop’ retirement has long been superseded by people looking to reduce their working hours and gradually transitioning into retirement, many working part-time while drawing on some of their pension to supplement income.
“Moving forward, however, while a gradual transition into retirement is expected to remain popular, our research suggests a sea change is looming, with a significant rise in people anticipating they will carry on working throughout their life.
“It’s vital that this changing approach to retirement is matched by how people are supported in work and saving throughout their life.
“There will need to be more flexibility so people who want or need to remain in work for longer are able to do so.”
She added: “This should go hand-in-hand with policy change to help people save more.
“Millions of adults are off track and not saving enough to provide the retirement income they expect and may end up delaying their retirement plans as a result.
“Increasing the minimum auto enrolment contribution rate being made into workplace pension should be a high priority in the next Parliament to help close some of pension savings gap.”
