More people expect to be fit to work above state pension age – AIG

Sophie King reports...

The older people are, the longer they believe they will be healthy enough to work – with the average expectation being to carry on until they are 68 – according to research conducted by AIG.

The study, which surveyed 3,000 adults, looked at the impact that rising life expectancy and health improvements are having, as people adapt the way they work and live.

It found most people believe they will be able to work beyond the age they can start claiming state pension benefits, even when it is extended to 67 by 2028. The research showed men are confident they could work until 69, while women believe they can work until 67.

About a third (31%) said believed they could work into their 70s and one in 14 said they were confident they could keep going in their 80s. Nearly half (47%) of people, however, felt the average time spent in retirement of 21 years is enough time to spend not working while one in seven (14%) believed it was too long.

In London, 28% of people believed it was too long to spend in retirement – which was twice as many as the UK as a whole. People in the north east meanwhile appeared keenest on a long retirement with one in three (32%) thinking 21 years would not be long enough.

‘Plan for the future’

AIG Life chief financial officer Donald MacLean said: “Retirement has changed massively in recent years as improvements in life expectancy and health, plus changes in the law, mean millions are living longer and can work longer if they want to.”

Now people are expected to live longer, he added, people needed to consider how they would protect themselves and their families financially in the years to come in case their plans were disrupted by illness.

“It is clear we all need to think about what we want, what might happen along the way that could derail that and take practical steps to plan for the future as early as possible,” MacLean said