Hundreds of thousands heading in the direction of ‘phased’ retirement



A serious new research means that 3.3m pre-retirees have began ‘phasing’ into retirement by decreasing hours and reducing again duties.

The research by L&G discovered that 34% of over-55s who’re nonetheless in some type of work have taken a decisive transfer in the direction of semi-retirement.

About half of workers aged 55+ (48%) count on to take a phased method to retirement quite than fully stopping work anytime quickly.

L&G says {that a} phased retirement method will imply a discount in earnings however fastened time period annuities can assist bridge the hole.

The research backs up current proof that many are delaying or deferring full retirement as a result of the price of residing disaster and the impression on incomes.

Regardless of the need for a phased retirement, the research discovered that one in 10 individuals who had begun to ‘part’ into retirement had been having to extend their work commitments once more.

Two fifths (40%) of people that anticipated to be transferring into retirement within the subsequent 5 years now fear residing prices would possibly make this plan unrealistic.

L&G says its survey additionally means that for a lot of retirement is “now not a line within the sand.”

Virtually half (48%) of workers aged 55+ count on to chop down on their working hours quite than fully stopping with one in seven (14%) planning to wind down within the subsequent 12 months.

Many individuals need to take the phased retirement route, says L&G, however most individuals say they’re making the choice as a result of they merely can not afford to retire absolutely (44%).


Desk one: When requested how folks had been planning to part their retirements, the most typical solutions had been:

How individuals are phasing retirement

% of pre-retirees

Lowered working hours from a beforehand full-time position


Taken on a self-employed position to work much less hours


Arrange my very own enterprise to permit for a discount in my hours


Comply with a discount in your job position along with your boss


Supply: Authorized & Basic, 2022


On common, over half (54%) of all people who find themselves taking a phased method to retirement are working 15+ hours much less each month and, on common, incomes £9,150 much less yearly.

In consequence, many count on to have to regulate their way of life (38%), and a few anticipate they may battle with paying for family necessities (17%).

Lorna Shah, managing director of retail retirement, Authorized & Basic Retail, stated: “The variety of pre-retirees contemplating a gradual or phased transfer into full retirement exhibits how a lot the notion of later life has modified in recent times. Nonetheless folks select to method retirement, it’s essential they see it as one thing that needs to be actively managed, and never one thing they already really feel they’re ‘in’ or have ‘performed’.

“For these wanting to maintain their choices open, whereas additionally on the lookout for methods to complement their earnings, versatile merchandise comparable to fastened time period annuities can play an essential position. They supply a assured earnings for a set time – in some instances as little as three years, serving to to bridge any potential hole in wage.”

• Analysis was carried out on-line by Opinium Analysis with 4,000 UK adults in October. The outcomes are weighted to offer nationally consultant standards. Pre-retirees’ refers to these aged 55+ who’re nonetheless in some type of work.







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