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Future of Work

New employment figures from the Office of National Statistics (1) report that the number of people who label themselves as “retired” before the age of 65 has fallen to a 23-year low to 1.19 million, falling by nearly a third since 2011.

Aviva estimates that the number of “early retirees” – those who leave work before the age of 65 – will hit an all-time low in the coming year. And if recent trends continue, Aviva estimates the number of these “early retirees” could hit zero by the year 2035.

A key driver in the recent collapse of early retirees has been the increase in the women’s state pension age. The number of women labelled as retired before the age of 65 has fallen by approximately 40% since 2010, to an all-time low of 0.66 million.

With the state pension age for men and women now equalised at 65, men are about to experience a parallel increase – with both genders currently set to see their state pension age rise to 68 from 2039. As the state pension age continues to rise, we can expect the number of people taking “early retirement” to continue to fall.

Commenting, Alistair McQueen, Head of Savings & Retirement at Aviva said:

“Men and women are set to experience parallel increases in their state pension age. This will have major implications for the working lives of millions of Brits.

“The state pension continues to represent the biggest source of income for the average retiree (2). The age at which we receive this critical income plays a huge part in determining the age at which we choose to retire. As the state pension age rises we can expect our working lives to increase, and the numbers choosing early retirement to fall.

“Employers have a responsibility to support their workers in the adoption of a longer working life. In 2019, Aviva will implement a Mid-Life MOT for all workers aged 45 and above. This will provide targeted guidance on how to manage wealth, work and wellbeing at this critical mid-point in our lives. A MOT today will hopefully help our engines run smoothly for many years to come.

“At Aviva we are committed to ensuring age is no barrier to opportunity.”

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