Its retirement Jim, but not as we know it.
According to research from Brewin Dolphin, retirees are turning their backs on traditional retirement, preferring to help out their families, continue working or support charities.
Following a study of 2,000 over 50s, the wealth manager found that one in five are still working full time in their primary career, however the large majority (71%) have retired or taken partial retirement. More than half had given up full time work earlier than anticipated - with an average age of 57.
One in 10 had been lucky enough to be able to afford to retire before the age of 50. In its research, Brewin Dolphin identified three core lifestyle choices for retirees. One in 10, labelled ‘Retirement Returnees’ had either set up a business, returned to work on a consultancy basis or was making money out of a hobby.
Money was the main motivator for Retirement Returnees (56%), but 53% also wanted to keep their mind active and 50% were worried about getting bored. The average retiree in this group worked 11 hours a week and earned £8,500 a year. However, some, whose skills were still very much in demand, could command earnings of up to £90,000.
One in eight were tagged ‘Vibrant Volunteers’ and were helping charities or in the local community. Maintaining social interaction was the key reason this group chose to volunteer (58%), but like those returning to paid employment, 54% also wanted the mental challenge. More than a third (35%) said they were passionate about helping a cause. People in this group typically volunteer for six hours a week.
‘Family Firsts’ accounted for one in six of those surveyed who were helping family members with, for example, grandchildren or older relatives.
One in 10 over 50s are spending time looking after their grandchildren – often because they believe it will help them live longer and help them stay physically active. On average, they spend 10 hours a week providing childcare. Those assisting older relatives, typically provided 14 hours of support a week, however two-fifths of people providing this sort of care (41%) felt obliged to do so.
Retirees play a vital role in society: Commenting on the findings, Liz Alley, head of financial planning at Brewin Dolphin, says: “Retirees play a vital role in society and attitudes to retirement have changed - people don’t necessarily stop working altogether; many see later life as a time to learn new skills, give back to the community or help family. However, for those looking to earn money in retirement, or use their time for social or family good, there will be different financial requirements to consider.
“People may think that retiring in their early 50s is unrealistic, but we’re seeing more people planning a staged retirement - whether its starting their own business, volunteering or helping family – it is increasingly becoming the norm. This may mean taking a pension later into retirement or using pension drawdown to fund a new business venture. Anyone planning a staged retirement may want to seek help before they give up working full-time to ensure that they are financially equipped to follow their hopes for later life.”
Brewin Dolphin plc is one of the largest British investment management and financial planning firms with 39 offices throughout the UK and Channel Islands. The company is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index
