Baby boomers 'pushed' into retirement despite wanting to work longer
Members of the Baby Boomer generation want to remain in work past state pension age but many have reported being forced out of the workforce, research has found.
Retirement technology solutions provider Dunstan Thomas published its latest multimedia report bringing together its findings from a major nationwide study of UK Baby Boomers aged 58 to 75.
The report includes market research, video interviews and analysis of findings from its nine month study of UK Baby Boomers' experiences leading up to and into full retirement.
It found that nearly half of Boomers are still working and many want to retire in their 70s. Dunstan Thomas said nearly half (44%) of UK Baby Boomers were still in paid work at the time of the study which took place earlier this year.
Nearly three quarters (71%) of these working Boomers said they were planning to work on beyond state pension age (currently set at 66 for them).
Working Boomers anticipate staying in paid work for an average of 4.3 years beyond state pension age. So, on average, they will be over 70 when they wish to retire, it added.
However, it found some older workers were being pushed out before they wanted to stop working.
Despite new age discrimination legislation, the report reveals evidence that many Boomers were still being pushed out of full-time work earlier than they wished to, helping to explain why retirement age expectation sits well below desired retirement age.
Dunstan Thomas' study also uncovered evidence from interviewing Boomers around the country that many Boomers have being forced out of full-time work in their late 50s and early 60s.
It said these findings "have considerable implications for employers who are now struggling to attract and retain skilled staff and may need to think more seriously about encouraging older workers to stay on beyond traditional retirement ages".
The study also focused on intergenerational pulls on baby boomer income. It said there was an increasing trend of intergenerational subsidisation.
The report said that a third (33%) of all Boomers anticipated continuing to support their children financially in some way following retirement. While 16% of these Boomers were also found to be supporting their grandchildren.
The average number of years this group expected to continue subsidising family members in-retirement was 9.6 years.
Adrian Boulding, director of retirement strategy at Dunstan Thomas, explained: "Many Boomers are financially supporting their children and increasingly grandchildren. And what they are likely to be setting aside for this purpose is running into thousands of pounds per year. We found one example of a pensioner paying the rent on her granddaughter's flat.
"This level of subsidisation by Boomers is worthy of further investigation because it has clear implications for the retirement income levels they will need to build in order to support themselves, their children and other family members simultaneously."
The full report, Exploring Baby Boomers' Lengthening Journeys to Full Retirement can be viewed on any device and downloaded from Dunstan Thomas' website here.
