2 in 3 2022 retirees plan flexible retirement

Two thirds of people planning to retire in 2022 do not plan on giving up work completely, in comparison to 56% of those who retired in 2021, according to a new report.

A third (34%) of those who retired in 2020 planned to continue some work.

A quarter (24%) of the 2022 retirees surveyed by Abrdn Financial Planning said they will go part time with the same job or a new one, 15% planned to continue to work for their own business, and 12% planned to start their own business.

The main reasons cited for choosing flexible retirement were the need for the income (31%) and wanting to keep busy (32%).

Less than three in ten (28%) had taken financial advice and only a quarter (25%) were aware of the potential tax implications of drawing a pension whilst still working.

Only a quarter (25%) of 2022 retirees said they were very confident that they have saved enough to fund their retirement, in comparison to 30% in 2021.

{loadposition hidden2}

Over a quarter (27%) said they do not know how to mitigate the impact of rising inflation on their retirement income.

Colin Dyer, client director at Abrdn Financial Planning, said: “Gone are the days when everyone had a set date or a set age from which they’ll never work again. The emerging trend for ‘flexi-retirement’ for financial reasons, or just to keep busy, is here to stay. The Class of 2022 are challenging the norms and doing what works for them.

“Hearing why retirees are choosing to work really underlines the importance of taking a holistic approach to retirement and how sensitive plans can be to external issues, such as the surge in the cost of living or the pandemic.”

Censuswide surveyed 2,000 UK adults in November on behalf of Abrdn Financial Planning about how they plan to spend their time and money in retirement.

{loadmoduleid 444}

2 in 3 2022 retirees plan flexible retirement