AGEING BRITAIN

People are living longer than ever before, and yet the state
pension age has remained stagnant at 65 for men (and
lower for women) for years. However, the cost of retirement
has surged as pension costs for the Treasury followed the
same trajectory as life expectancy, which has increased by
more than a decade over the past 50 years.
The state pension age for both men and women is set
to reach 66 by 2020, rising further to 67 and 68 over the
coming decades. The World Economic Forum has even
suggested developed countries should raise their retirement
age to at least 70 by 2050 as the number of people over 65
more than triples to 2.1 billion.
And yet, an increasing amount of employees wish to
continue employment past the state pension age, with
seven out of ten citing income and savings-related
concerns. And while data shows that workers want
the option of flexible retirement, not all businesses are
prepared to offer it.

PATH TO STATE PENSION AGE AND RETIREMENT TIME FLEXIBLE RETIREMENT OPTIONS
Projected state pension age under current legislation and proportion of adult life in retirement Data shows a gap between what employees want
and what is offered by employers

Proportion of adult Female life expectancy State pension age under Offered benefit by employer
life in retirement current legislation
Male life expectancy Very or extremely important to employees

90

85
58%
80 52%
RETIREMENT
75

70
45%
34%

65

60
32%
55
28%
50
AGE

45

WORKING LIFE
40

35

30

25

20

15

10
CHILDHOOD
5

0
2020 2030 2040 2050 2060 Phased Ability to work past
retirement retirement age

Government Actuarys Department/Office

for National Statistics 2016

HOW UK WORKERS SEE

THEIR RETIREMENT 36%
I will change the way I
work (working part time or
14% temporary contracts), but
only for a while before I
I will change the way I eventually give up paid work
work (working part time or altogether
temporary contracts) and
will continue paid work
throughout retirement in
some capacity

10% 28%
I will keep working as I I will immediately stop
currently do; retirement age working altogether and
wont make a difference to the enter full retirement
way I work

12%
Other/dont know

REASONS PEOPLE WILL CONTINUE WORK AT RETIREMENT AGE

7/10
workers expect to continue
57%
Want to keep active/
brain alert
37%
Enjoy my work/career
32%
General anxieties
about retirement income
and savings
working at retirement age
because of income and
savings-related concerns

MEAN AGE AT WHICH PEOPLE EXPECT TO RETIRE 32% 24% 23%

65 Concerned social Concerned that my Not saved enough on
security benefits are less retirement plan benefits a consistent basis
64 than expected are less than expected
Age expected to retire

63

62

21% 20% 6%
61

60

Expect employment to be Retirement income Planning a career

18-24 25-34 35-44 45-54 55-64 my primary income while less than expected due break/time out
Current age transitioning to retirement to recession

Aegon 2016