Press release - B2B media Only one in six expect a ‘hard stop’ retirement as later-life plans become more varied

• Only 16% of UK adults expect to stop work completely and enter full retirement
• 30% expect to continue working in some capacity during later life
• 41% say keeping their brain active is a key reason for continuing to work
• 39% are not confident they can live comfortably in later life, rising to 45% among women

New research from Aegon's Second 50 campaign suggests the era of the traditional 'hard stop' retirement may be fading, as people increasingly expect later life to look different from the conventional path of working full-time before stopping work altogether. Just 16% of UK adults expect to stop work completely and enter full retirement.

Instead, many expect a more flexible transition into later life. Around 30% anticipate continuing to work in some capacity, split between those who expect to work differently during retirement (17%) and those who do not expect to consider themselves retired at all (13%). Nearly one in five (19%) expect to phase work down before eventually stopping work altogether, while 10% would consider moving into a completely new role.

The largest single group, however, remains those who do not yet know what their transition into retirement will look like, at 23%.

For many people, continuing to work beyond traditional retirement age is a positive choice rather than a financial necessity. The most common reasons are wanting to keep their brain active (41%), maintaining a good work-life balance (35%), supporting their physical and mental health (30%) and enjoying work and working life (24%). Others say feeling empowered to continue working (16%) or increased flexibility through hybrid and remote working (11%) has made extending their career more appealing.

However, financial considerations play a role for some. Around 23% say they would need to continue working because they have not saved enough, while 20% have concerns about whether their retirement income will meet their needs and 17% expect their retirement income to be lower than they had anticipated.

The findings also show that confidence and certainty about later life are far from universal. While 53% of UK adults say they are somewhat, very or extremely confident they will be able to maintain a lifestyle they consider comfortable throughout retirement, 39% are not confident and 9% do not know.

Women are significantly less confident than men, with 45% saying they are not confident they can live comfortably in later life compared with 31% of men.

The findings suggest retirement planning is increasingly about more than deciding when to stop work altogether. For many adults, it now involves considering whether to phase work down, change the type of work they do, continue earning in some capacity, or balance work with other priorities and aspirations in later life.

Aegon's Second 50 campaign explores how later-life decisions rarely happen in isolation, with five fundamentals: work, wealth, family, health and wellbeing all shaping how people think about retirement.

Kate Smith, Head of Pensions at Aegon UK, said:

“Life after 50 looks very different compared with previous generations, and for many it can feel like uncharted territory. Retirement is no longer viewed as a single moment in time, instead, people are increasingly thinking about how work can fit alongside other priorities and aspirations in later life.

“That’s central to the ethos of Aegon’s Second 50 campaign. Decisions about the different parts of life are deeply connected, and people are often trying to make sense of several moving parts at once when planning for later life.

“What's particularly interesting is that many people are considering a range of possibilities, from reducing their hours to changing roles or continuing to work in a way that suits them, sometimes to enable them to work longer. For many, this is about choice, flexibility and staying engaged, rather than simply reaching a fixed end point.

“While it's encouraging that more than half of adults feel confident about their future, our findings show that confidence isn't shared equally, particularly among women. Helping more people feel informed and supported to make decisions about later life will be an important part of building that confidence."

Kate’s top tips for gaining confidence in your retirement plans

Think about the life you want in your Second 50

• Consider what you want later life to look like across work, money, health, family and lifestyle.
• Think about whether you want to stop work completely, phase down, change role or keep working in some capacity.
• Use this as a starting point for understanding what you may need financially.

Build a clear picture of what you already have

• Create a simple snapshot of your workplace pensions, personal pensions, savings, investments and any other assets, so you can see what you have at a glance.
• Check your State Pension forecast so you understand what you may receive and when.
• Seeing everything clearly in one place, even when they are separate, can help make retirement feel less uncertain.

Plan for life changing along the way

• Think about how changes to work, health, caring responsibilities, relationships or housing could affect your plans.
• Consider how flexible your income needs to be if your circumstances change.
• Review your plans regularly rather than treating retirement as a one-off decision as your circumstances may change.

Don’t plan in isolation

• Talk openly with your partner, family or anyone who may depend on you financially or practically.
• Make sure joint plans still reflect your individual and household needs and ambitions.
• If you are unsure, consider speaking to a financial adviser or using guidance services to explore your options.

Take small steps early

• Increase pension contributions where you can, even if only gradually.
• Look for ways to fill any gaps created by career breaks, part-time work or periods of lower saving.
• Working later can make a positive difference to your retirement plans. 
• Starting early gives you more time to adapt your plans as life changes.