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HomeFinancial PlanningTens of millions heading in direction of ‘phased’ retirement

Tens of millions heading in direction of ‘phased’ retirement


A significant new research means that 3.3m pre-retirees have began ‘phasing’ into retirement by lowering hours and slicing 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 direction of semi-retirement.

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

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

The research backs up latest proof that many are delaying or deferring full retirement resulting from the price of dwelling disaster and the affect 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 have been having to extend their work commitments once more.

Two fifths (40%) of people that anticipated to be shifting into retirement within the subsequent 5 years now fear dwelling prices may make this plan unrealistic.

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

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

Many individuals wish 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’t afford to retire totally (44%).


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

How individuals are phasing retirement

% of pre-retirees

Diminished 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


Conform to 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 strategy to retirement are working 15+ hours much less each month and, on common, incomes £9,150 much less yearly.

Because of this, many count on to have to regulate their way of life (38%), and a few anticipate they might wrestle 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 reveals how a lot the notion of later life has modified in recent times. Nevertheless folks select to strategy retirement, it’s necessary they see it as one thing that must be actively managed, and never one thing they already really feel they’re ‘in’ or have ‘accomplished’.

“For these wanting to maintain their choices open, whereas additionally searching for methods to complement their revenue, versatile merchandise corresponding to fastened time period annuities can play an necessary position. They supply a assured revenue for a set time – in some circumstances 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 supply nationally consultant standards. Pre-retirees’ refers to these aged 55+ who’re nonetheless in some type of work.



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