A “carriage clock retirement”, where people stop working and rely solely on their pension is no longer an option, with 52 per cent of UK expectant retirees anticipating that their financial situation will not support their desired lifestyle, The People’s Pension (TPP) has reported.

According to a poll of over 4,000 people, over half of UK adults do not expect their finances to support their desired retirement. As a result, 39 per cent said they would work part-time, 27 per cent said they would downsize their property and 24 per cent said they would rely on inheritance from family and friends to support them financially.

Moreover, following the government’s decision to bring forward the rise in the state pension age, the research found 52 per cent of UK adults who are not yet retired admitted that they were unclear as to what age they will start receiving the benefit. A further 18 per cent of non-retired people aged 55 plus said that they didn’t know what age they would receive the state pension and over half, 55 per cent of this group said they did not know what the full state pension weekly rate currently is.

Among 18 to 24-year-olds, 93 per cent didn’t know the state pension weekly rate and 83 per cent weren’t aware of when they will be able to receive it. Nonetheless, the younger generation reported realistic expectations of retirement ages, with 31 per cent saying they will likely retire aged 65 to 68, while 23 per cent said they would be aged 70 or over.

The People’s Pension director of policy and market engagement Darren Philp, said: “This research confirms that the concept of a “carriage clock” retirement, whereby people completely stop work and rely on their pension savings is consigned to history. Instead, people appear to be planning for a phased retirement, where they may choose to work part-time, or surviving on uncertain funding sources such as an inheritance or property. Most worryingly, these “precarious pensioners” are not solely the generations of the future but include those over 55, many of whom may be unprepared financially for imminent retirement.

“It’s clear that much still needs to be done to help ensure that people fully understand what support is available to them and when.”

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