Report claims some workers will work past retirement age as “they don’t need to go into the workplace as often”
As hybrid working became increasingly common during the pandemic, research has revealed the affect this is having on retirement plans.
A report by M&G Wealth showed almost one in three (31%) of those surveyed believe that flexible and hybrid working means that people will now continue working well past the state pension age.
In addition to this, attitudes towards the retirement age have changed, as 11% of those surveyed stated that they will now continue to work full time or part time past age of retirement “because they don’t need to go into the workplace as often”.
The latest statistics from the ONS on employment and the labour market corroborate with these findings, as this showed a 1.4% increase in employment in over 65s, compared to the same period last year.
Interestingly, hybrid working has also led to some people looking in the opposite direction. One in ten (10%) of pre-retirees who were surveyed said that working has allowed them to save more for retirement, and that they will now be able to retire earlier than the state pension age.
The report suggests this could be due to working from home erasing the costs of travel, lunches, and socialising.
Flexibility of hybrid working
The report also found that one in seven (14%) of hybrid workers enjoyed a better work/life balance as it allowed them more flexibility in their working times.
This improvement in people’s quality of life resonated particularly with a fifth of Londoners (21%), in comparison with just one in 10 in Scotland and of those from the East of England (10%).
However, it was also revealed that 7% stated they wanted to retire as soon as possible due to hybrid working.
Vince Smith-Hughes, pensions expert at M&G Wealth, said:
“Hybrid working has had a significant impact on people’s daily lives, which in turn has influenced their attitudes towards career and retirement plans.
Whether the increased flexibility means being able to stay in the workplace for longer or retiring earlier – the decision about when to exit the workforce is a very personal one that needs careful consideration.
It’s also important to recognise that for many people the decision about when they retire can be dictated by factors outside of their control, including redundancy, ill health or wider family commitments such as caring responsibilities.
No matter what ultimately drives your decision to stop working, being as financially prepared for retirement as possible gives you the best possible chance of maintaining your standard of living. For most people seeking the help of a financial adviser will be the right thing to do as they can help you understand the impact on your finances, and assist you in securing a retirement plan that’s flexible enough to suit your lifestyle and your finances.”
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