Half of UK adults want to retire by the time they’re 61 – and most are happy to save more to do so

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Attitudes of the UK public have been found to contradict the idea laid out in the recent Cridland Consultation, that people should work longer into later life, as the State Pension age increases. In fact, nearly half (48%) of UK adults who have not yet retired, want to retire by the time they are 61, with one in two (50%) happy to save more into their workplace pension to do so, as revealed in the new research* from workplace pension provider NOW: Pensions.

John Cridland, CBE was appointed as the government’s independent reviewer of the State Pension age in March 2016, and will deliver his final recommendations this year. However, the findings from NOW: Pensions, challenges the assertion in the Cridland Consultation that Fuller Working Lives and a later State Pension age are the answer to increasing longevity.

The research found that:

  • On average people want to retire at 61 but financially don’t think they’ll be able to until they’re 64.
  • Of those who want to retire at 61, when asked why:
    • 69% said they want to finish work when they’re still healthy enough to enjoy themselves;
    • 31% think they’ll be tired of work by this time and won’t feel motivated to continue working;
    • 19% want to stop working at this age to help care for grandchildren;
    • 9% want to care for their elderly parents;
    • 18% don’t think they will physically be able to work beyond this age;
  • Two in five (41%) don’t want to work in later life but financially think they’ll have to.
  • 28% are happy to work but want to be able to work part time / flexibly.

Adrian Boulding, Director of Policy at NOW: Pensions, comments: “Whilst obviously life expectancy is increasing and we can look forward to a long retirement, our research shows that people would like to be able to retire whilst they are still healthy enough to enjoy themselves. It’s clear that some people are realising that what they want and what they can afford are two different things”.
Boulding concluded: “If people are going to use their auto-enrolment pension pots to bridge the gap between early retirement and State Pension age, then they are going to have to pay more into them first. The increase in auto-enrolment contributions past 8% is something we’ve lobbied for a while, and we firmly believe that this is something that needs to be addressed in the imminent 2017 auto enrolment review.”

– ENDS –

For further information:

Cheriton Lee
NOW: Pensions
Tel: 0203 826 1464

Lauren Roberts
NOW: Pensions
Tel: 0207 566 9760

Notes to editors

*Research conducted by Opinium online between 13 December 2016 and 16 December 2016 with 2,000 UK respondents of the age of 18 and over

NOW: Pensions www.nowpensions.com @nowpensions

NOW: Pensions is one of the UK’s largest workplace pension providers with over a million members and tens of thousands of employers from a wide range of sectors. A subsidiary of one of Europe’s largest pension funds, Danish pension scheme ATP, NOW: Pensions entered the UK market in 2011 with a simple and cost effective workplace pension designed specifically with the auto enrolment market in mind.

NOW: Pensions was one of the first providers to achieve independent assurance of scheme quality in accordance with the master trust assurance framework (AAF02/07) introduced by The Pensions Regulator in conjunction with the Institute of Chartered Accountants in England and Wales (ICAEW).

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ATP comes to the UK pensions world with the highest commendations from the Danish trade unions, employers and government. NOW: Pensions' offering in the UK will be high quality, low cost, and honest and I'm proud to be associated with it. — John Monks, member of House of Lords and former General Secretary of ETUC and TUC
“We were impressed with the simplicity of its scheme. The ease of implementation was also a big plus for us and has removed much of the administrative headache.” — Neil Tune, HR director at Fitness First
Over a short period of time, NOW: Pensions has established itself as a respected and credible player in the UK workplace pensions market attracting thousands of employers and hundreds of thousands of members. Joining the team at such a crucial time… — Jocelyn Blackwell, Founder of Dunnett Shaw and Raising Standards in Pensions Administration
…We pride ourselves on our abilities to make the perfect match for both clients and workers. Our decision to appoint NOW: Pensions came as a result of wanting a quality workplace pension scheme that is structured, simple and easy for us to… — Ian Naylor, Legal Director of Randstad
...its simple design means the pressure is taken off us as the employer and avoids costly administration charges, whilst removing the burden of choice and ensuring the best possible retirement outcome for our employees. — Matthew Johnson, Head of Compensation and Benefits at Adecco Group UK & Ireland