Over half of Brits expect to work in retirement

More than half (54 per cent) of Brits expect they will have to keep earning in retirement, while 13 per cent believe they will have to work for the rest of their lives, a survey has found.

ING Bank’s latest International Survey on Savings and Retirement published today, 20 February, found that of those who expect to have to earn in retirement, 58 per cent would turn to the gig economy or temporary employment.

The study, which surveyed 1,041 Brits, is further evidence that ‘traditional retirement’ is becoming obsolete, at a time when the UK is set to increase its retirement age to 66, with planned further rises planned over the next decade.

Commenting on the findings, ING behavioural scientist, Jessica Exton, said: “These findings shine a light on the true extent of the problems many face in reaching long-term savings goals … many still agree they face financial challenges, such as expecting to need to earn in retirement. And this is not a problem confined to the UK.

“Long-term planning is difficult when many are also facing short-term savings challenges, a trend seen across all countries surveyed.”

According to the research, only a third of people expect to have the same standard of living in retirement, while 20 per cent said they don’t expect to retire at the current state pension age.

ING chief international economist believes a squeeze on spending power is to blame.
“In the ten years since the peak of the global financial crisis the cost of living, as measured by UK consumer price inflation, has gone up by nearly 25 per cent, yet wages have risen only 21 per cent.”

The survey also highlights the length that fintech must go in order to have a large influence on peoples investment decisions.

Just 15 per cent of people used mobile apps for making investments, despite 43 per cent saying the feel “more confident” viewing investments this way.

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