Thursday, 24 December 2009

What older workers say they want

Ipsos-MORI questioned 1,196 people born between 1945 and 1960 between September 11 and October 1.

Only one in four older workers plans to retire early, with 43% intending to work on into their late 60s and 70s, research has shown.

Around 26% of people aged over 50 who have not yet retired hope to give up work before they reach the state pension age, according to the Department of Work and Pensions.

But 25% plan to work on for a few years after being able to claim their state pension, while 12% say they will work for a long time after this date, and 6% will leave their current job but look for other work that suits them better.

Only 31% of those questioned said they planned to retire when they were able to pick up their state pension.

Around 28% said they planned to work for longer due to financial considerations, with 26% saying the recession had changed their retirement plans.

But 22% said they did not feel old enough to retire completely, 21% said they loved their job and 20% said they thought working kept them younger and fitter.

Many people did not know the benefits of working on beyond the state pension age, with 44% not realising they would not have to pay National Insurance, while 38% did not know they could defer taking their state pension in exchange for getting a larger income later.

Minister for Pensions and Ageing Society Angela Eagle said: "The idea that you reach state pension age and suddenly stop work is being challenged by our generation of baby boomers, with many not feeling old enough to stop work completely.

"People want the choice to decide what's right for them but, worryingly, many make this decision based on little or no knowledge of the financial facts."

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