UK savers aim to take earlier retirement but expect less state support new research indicates.
A survey commissioned by financial services policy specialists Cicero Consulting, shows there is also a stark divide in the expectations of working life, with over a quarter of Britons (27%) expecting to retire before 60; whilst a third (33%) acknowledge that they may have to work beyond 65 and are willing to consider flexible working patterns and state incentives.
Among the other findings the research reveals only 17% of people in the UK envisage three quarters or more of their pension coming from state provision, compared to 64% in Spain and 41% in France and Italy.
The driving factors that would make people across Europe work longer are: an enhanced state provision for those working past the normal age of retirement (47%); and the ability to do their job on a part time basis (45%), says the research.
Most respondents (72%) across the EU say they would consider extending their working life in order to get an additional pension increment. Only 11% say they would not consider this as an option.
Iain Anderson, director and chief corporate counsel at Cicero Consulting says: "The results of this research provide policymakers across the EU with important clues suggesting – given the right conditions – people are prepared to work longer in order to secure a better retirement income. As the UK awaits the publication of the Turner report – it appears UK citizens are willing to explore the idea of flexible working in retirement."
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Matthew West on 020 7484 9893 or email [email protected].IFAonline
The increase in minimum AE contributions has had little impact on opt-out rates - with cessations after April increasing by less than two percentage points, data from The Pensions Regulator (TPR) shows.
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