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Brits plan to work through retirement

Less than a third of UK adults are planning to stop working after they retire, according to a poll by Aegon UK.

The survey of 16,000 people across 15 countries found that just 29% of working UK adults intends to stop working completely when they reach retirement age.

The research found:

  • 36% of people expect to do part time or temporary work for a while after they retire
  • 14% hope to continue some form of work throughout retirement
  • 52% of Spanish workers and 51% of French workers will stop working altogether in retirement.

However, with grandparents increasingly providing childcare due to rising costs and a lack of facilities, their plans to work later in life could see parents having to budget more for their childcare costs.

The average cost of childcare has risen by 27% during the last 5 years and just 27% of local authorities have enough childcare to cater for working parents.

David Macmillan, managing director at Aegon UK said it was "not surprising" that many people plan to work part-time in retirement. He continued:

"However, many parents rely on the generosity of a grandparent to help with childcare and this trend may have a significant impact on the amount parents need to set aside for childcare costs.

"Another take on this trend would be to look at the increasing financial support older generations are providing to younger generations. We may well see grandparents continuing to work not just for their own financial needs but in order to support younger family members with childcare costs, school fees and broader costs such as the ability to get on to the housing ladder."

Talk to an adviser about your retirement and financial planning.