Catalysed by the 2011 abolition of the Default Retirement Age, a combination of economic and socio-demographic trends are changing people’s outlook to retirement; and this, in turn, is heightening the need to adopt a more fluid approach to retirement planning. 

Carry on working  

Research¹ suggests the traditional ‘hard stop’ retirement is increasingly being consigned to history, with 69% of UK adults now believing retiring in your sixties will become a thing of the past. Another study² found that 41% of adults expect people never retiring to become the norm over the next 10- 25 years; this represents a sea change in opinion with comparable figures from previous studies on this issue around 13%. 

Mind the tax 

There are undoubtedly good reasons why people continue working beyond retirement age, not least the financial benefits. Some enjoy the sense of purpose or structure a job provides, while others see it as a way of keeping active and sociable. This trend to a more gradual transition from the world of work, however, does increase the need to carefully consider any tax implications associated with earning an income while potentially taking, or delaying, pension benefits, particularly in relation to tax brackets. 

Whenever and however you want to stop working, proactive preparation is the key to a happy and comfortable retirement. 

¹Canada Life, ²Phoenix Insights, 2024 

The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. The Financial Conduct Authority (FCA) does not regulate Will writing, tax and trust advice and certain forms of estate planning. 

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