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Retirement is not an option

The number of people planning to give up their jobs when they reach retirement age is decreasing fast, amid fears their pensions will not be enough to fund a comfortable lifestyle.
 
Les Cox, Consultant at Dyke Yaxley, says this could pose a major headache to working parents who hope to rely on grandparents for help with increasingly expensive childcare.
 
Les said: “A poll by Aegon shows that less than a third of UK adults are planning to stop working when they reach the state retirement age. A third of people say they expect to be doing some part-time or temporary work after they retire, while a further third intend to carry on with their full-time job.
 
“This figure is far higher than in mainland Europe, where well over half of workers say they will stop working altogether in retirement.
 
“There are many reasons for this shift in attitude. Historically low interest rates, spiralling food and fuel costs, and a later State pension age, mean that many people looking forward to a well-deserved retirement have had to change their plans and continue working until they feel financially more secure.
 
“And with grandparents increasingly providing childcare for working parents due to rising costs – and in many rural areas, a lack of facilities – this could be a costly trend. Older people’s plans to work later in life could see parents having to set aside far more cash for their childcare costs.
 
“Barely a quarter of local authorities have enough childcare provision for working parents, and those who have managed to find a place for the child have seen the average childcare bill rise by 27 per cent in the past five years.
 
“That is why many parents rely on the generosity of a grandparent to help with childcare.
 
“Grandparents are not just continuing to work for their own needs, though. Many are doing so to support younger families with bills for things such as school fees, or to help them get a deposit to join the housing ladder.
 
“Officials at Saga say many people approaching what they thought would be their retirement age have found that the impact of the recession has meant that their pensions will no longer provide the income they had hoped for. And so, rather than compromise on the quality of life in their retirement, they’ve chosen to continue to work, either full or part-time, to boost their income.”
 
Dyke Yaxley's Les Cox