While the Government addressed the issue of longevity in retirement by increasing the state pension age to 66 years old by 2020 in the Comprehensive Spending Review, research from Friends Provident shows this will have little impact in the decade to come.
Retirement is rapidly becoming an outdated term as many Britons do not want to stop working at an arbitrary age. In Friends Provident’s Visions of Britain 2020: Ageing and Retirement Report published earlier this week, it was found that a staggering 51 % of Britons preferred to continue working after they reach their retirement age as a way of staying active, engaged and contributing to society.
Though the idea of a later retirement age can sound daunting, people are living longer and this new generation of healthy active older individuals wish to remain involved and economically active.
Trevor Matthews, CEO Friends Provident commented:
“The definition of old or retired has evolved and by 2020, the face of retirement will look completely different from the one that we have become familiar with in recent years. People are living longer and this new breed of energetic and healthy individuals want to remain involved and not become economically inactive. But people need to be aware of the reality of working longer. As a nation we should start seeing retirement as a process in our lives and not a one-off event. Actively saving now for tomorrow will have a far greater impact for individuals come 2020 than today’s proposals.”