Third of UK pensioners pushed into retirement by employers

A third of UK pensioners claim they were pushed into retiring by their employer, a survey indicated yesterday.

Around 33 per cent of people who are retired said they gave up work because their employer suggested it or because they had reached the normal retirement age for their firm, according to insurer Aviva.

But government plans to abolish the default retirement age in April next year are expected to lead to a big increase in the number of people delaying retirement or giving up work gradually by going part-time. Six out of 10 people aged over 55 said they were already down-shifting, either by reducing the number of days they worked or by working fewer hours.

Others have switched to a less stressful role, taken up consultancy work or turned a hobby or interest into something that can generate an income, the survey found.

Around 60 per cent of people said they did not want to continue working for their current employer when they reached the state retirement age, suggesting many people see retirement as the chance to start a new challenge.

Clive Bolton, ‘at retirement’ director for Aviva, said: “The removal of the default retirement age provides people with the freedom to design their own retirement.

“Some people will naturally choose to stop work when they start claiming their state pension, but many are likely to continue working as they genuinely enjoy their roles and gain both social and financial benefits.

“As part of this move to DIY retirement, we expect to see more people down-shift their careers as they look for more flexibility and less pressure in the final few years of their working life.”

But despite the removal of the default retirement age, some people are still likely to be forced to give up work due to ill-health.

One in five people retire due to chronic or age-related health conditions, while 11 per cent stop work because they are made redundant and think they are too old to look for a new job, the survey found.

Meanwhile, separate research, also published by Aviva, showed that three-quarters of older people were worried about the rising cost of living.

Around 74 per cent said inflation was their biggest worry over the coming six months, followed by facing unexpected expenses, at 36 per cent, the low return they are getting on their savings, at 35 per cent and tax increases, at 26 per cent. Minister for Pensions Steve Webb said: “Many older people want to work longer and we want to make sure they have that choice.

“Ending the default retirement age will help people improve their financial position and will allow them to retire when the time is right for them. Older people have a wealth of skills and experience and make a vital contribution in the workplace and to our economy.”