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Boulding: More people are being pushed into semi-retirement

With retirement income set to fall, many baby boomers are choosing to work full or part time after retirement.

A new nationwide retirement income study of baby boomers we commissioned in June found that one in five (19%) 66-71-year-olds are still working full or part time to supplement their retirement income, despite this entire age group being older than the state pension age (SPA).

Of the surveyed group of 54-71-year-olds that had not yet retired, more than half (56%) predicted working full or part time well beyond the SPA, which currently stands at 65 for men and 64 for women. These baby boomers now see themselves working on for an average of four years and two months, so they will be just over 69 years old when they stop paid work.

Baby boomers’ overall pre-tax retirement income, derived from state and personal pensions and other investment income, averages £23,376 across the entire sample. However, retirement income is set to fall as a percentage of final salary. While 66-71-year-olds today calculate their total annual retirement income at an average of £25,323, this will fall to £20,486 per year for younger boomers aged 54-59.

These findings shine a light on the blurring of the lines between work and retirement. It raises the question: when are most of us going to retire in the traditional sense?

Adrian Boulding is director of retirement strategy at Dunstan Thomas.

A new nationwide retirement income study of baby boomers we commissioned in June found that one in five (19%) 66-71-year-olds are still working full or part time to supplement their retirement income, despite this entire age group being older than the state pension age (SPA).

Of the surveyed group of 54-71-year-olds that had not yet retired, more than half (56%) predicted working full or part time well beyond the SPA, which currently stands at 65 for men and 64 for women. These baby boomers now see themselves working on for an average of four years and two months, so they will be just over 69 years old when they stop paid work.

Baby boomers’ overall pre-tax retirement income, derived from state and personal pensions and other investment income, averages £23,376 across the entire sample. However, retirement income is set to fall as a percentage of final salary. While 66-71-year-olds today calculate their total annual retirement income at an average of £25,323, this will fall to £20,486 per year for younger boomers aged 54-59.

These findings shine a light on the blurring of the lines between work and retirement. It raises the question: when are most of us going to retire in the traditional sense?

Adrian Boulding is director of retirement strategy at Dunstan Thomas.

Survey of more than 1,000 54-71-year-old UK residents conducted by Opinium for Dunstan Thomas.

Survey of more than 1,000 54-71-year-old UK residents conducted by Opinium for Dunstan Thomas.

Survey of more than 1,000 54-71-year-old UK residents conducted by Opinium for Dunstan Thomas.

Survey of more than 1,000 54-71-year-old UK residents conducted by Opinium for Dunstan Thomas.

Survey of more than 1,000 54-71-year-old UK residents conducted by Opinium for Dunstan Thomas.

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