Should I postpone retirement?
To some people the answer to this question would be a straight up “no”. You’d imagine that most people are hoping for an early retirement, not to postpone it. The opportunity to see the world, spend time with the grandkids and enjoy your free time would surely by more enticing than continuing at work.
In 1909, the old age pension was first introduced, whereby anyone over the age of 70 would receive an ongoing sum of money. However, back then the life expectancy was a lot shorter than it currently is, and so they were unlikely to live many years past 70. Obviously since then a lot has changed.
From October 2020, the age you can take your state pension is set at 66, currently you can take it at 65, depending on gender and date of birth. On average people are living at least to age 85.
In 1948, a 65-year-old would take their pension for an estimated 13.5 years, nearly 23% of their adult life. Over time this has increased. In 2017 a 65-year-old would expect to need their pension for 22.8 years, now nearly 33.6% of their adult life.
The number of people living to 100 these days has also massively increased. This has meant that the Queen has had to increase her centenarian letter writing team to keep up with the demand for the 100th birthday message from the palace.
Over the last 15 years the number of centenarians in the UK has increased by 85% according to the Office for National Statistics. By 2080 there will be an estimated 21,000 of them.
If someone does retire at 65 and lives up until 100, it is not only expensive for the state it is also an issue for the individual to fund their retirement as well. It was never intended for the state pension to support someone for such a sustained period of time.
It has therefore made sense for some people to continue working beyond their retirement age if they are fit, healthy, capable and are happy to keep working. As this older population has ample experience to draw from it makes them a valuable employee.
For the past decade the number of 70-year olds in full or part time employment has been increasing year on year according to the Office for National Statistics. In the first quarter of 2019 there was 497,946 employees, an increase of 135% since 2009.
Therefore, rather than worrying about whether you will have enough saved for retirement. You could work a few extra years and live a more comfortable and stress-free life.
Please talk to us to see if we can help you plan your retirement. Get in touch with us on 01609 760960. Or arrange a call back and one of our mortgage brokers will be happy to help.
Reference – BL040 – Mar – 20