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One in five to work past state pension age

Joanna Faith
Written By:
Joanna Faith
Posted:
Updated:
15/07/2015

More than one in five (21 per cent) pensioners have gone back to work since they reached the State Pension age, or are planning to do so in the future, new research reveals.

The most common motivation for heading back into the jobs market is a desire to keep mentally active (61 per cent), although the need to boost retirement income (56 per cent) is also driving retirees back to work, according to the study by Prudential.

Voluntary work is the choice of around one in six (16 per cent) retirees who are back at work or plan to return in the future.

Those who are earning are likely to take a pay cut – more than half (51 per cent) said their post retirement wages will be lower than their previous income in employment.

Meanwhile, nearly one in 20 working past state pension age are earning more than they did before, while one in 12 are setting up their own companies.

Data from the Office for National Statistics (ONS) showed that the most popular employment sectors for this demographic were teaching and education, secretarial jobs and agricultural jobs.

Stan Russell, retirement income expert at Prudential, said: “Although it’s striking to see how many retirees are choosing to return to work, it’s not optional for some people. While many say that working in older age is a good way of staying active, there are others who are forced to go back to work to make ends meet.

“Of course, there are real financial benefits from going back to work, such as earning extra cash and deferring taking the state pension or income from private savings. However, for people who are hoping to give up work completely when they retire, saving as much as possible as early as possible in their working life remains the best way to secure the most comfortable retirement.”

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