The third Interim Report of the 2016 Smaller Firms Pension Survey, conducted by the Association of Consulting Actuaries, has found that over the last two years there has been a big shift in firms’ expectations of the typical retirement age of employees over the next decade or so as State Pension Age is raised.
Recent surveys have shown that the number of those staying on at work past the State Pension Age has been climbing at some pace. This has been explained largely by the financial pressures on those approaching retirement, not least because of much reduced income from private savings and annuities in a low-interest rate environment.
This year’s survey found a significant shift in the percentage of firms where employees are typically retiring at age 66 or above – 35% as opposed to just 8% two years ago, with the change most marked amongst firms employing fewer than 50 employees.
Autonomy Wealth view: when combined with the greater flexibility available for many in drawing pension benefits and the continuing increase in life expectancy (today, a 65 year old female in good health has a 50% chance of living to be 96!*) we are seeing an increase in both part-time working and deferring retirement beyond state pension age and it seems inevitable this trend will continue.
*source: Just Retirement Group