A new group of consumers are emerging that may well opt not to live off their pensions, but continue working into retirement out of choice, suggests a new report.
The pensions provider, Friends Provident, has predicted a new trend in which people currently in their late 50s and early 60s will decide to never fully retire and live purely off their pension scheme.
Currently this group of consumers are usually working at the top of their careers and enjoying the financial freedom gained after their children left home.
People in this age bracket buy 80 per cent of the most expensive cars and 50 per cent of skin products, as well as the majority of cruise holidays. Many of them fear they won't be able to afford to buy such luxuries if they rely solely on their pension fund.
According to Jeremy Ward at Friends Provident there is also a feeling among this group that retired life living off a pension scheme will mean they miss out on keeping up to date with what's going on in society.
He explained that career driven people in their 50s have maintained "open attitudes, political awareness and readiness to consider new ideas".
"They believe in using their money for fun, enjoyment and new experiences. They don't want to give up work because they are uneasy about the thought of ceasing to function in society and as consumers," he said.
He adds that in the next ten to 15 years phased retirement will be "desirable" and that there will still be a need for consumers to carefully consider their long-term pension plans.
The pensions provider's research estimated that by 2020 there will be 8.1 million 55- to 64-year-olds in the UK and around 64 per cent of these will be intending to continue working into retirement or at least only partly relying on their retirement pension.
Pensions not always needed, suggest research
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Pensions not always needed, suggest research
Fri, 24 Mar 2006
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