Retirement before 65 to be a distant dream by 2035 as working becomes necessity: Report

old man
Picture for representation Pixabay

A recent report by Aviva has warned that the retiring trend will undergo drastic changes in the next one decade, and most of the people will have to work until the age of 65 in 2035.

According to the report, various factors like higher life expectancy, the demise of final salary pensions, and a rising state pension age, have contributed to the decline in the number of people retiring before 65 drastically by 25 percent in past seven years.

As early retirement possibility is narrowing each year, some people may even work post 70, said Alistair McQueen, head of savings and retirement at Aviva. Nobody will give up his or her work until the age of 65 by 2035, which indicates that most of the people born after 1970 will remain working even beyond their 65th birthday.

Even though the current study is based on the sample in the UK, the trend is expected to be similar in all other countries across the globe.

Work in your old age to lead a comfortable life

A senior official at the Department for Work and Pensions (DWP) said that many people who have retired at the age of 50 may be compelled to return to work in the coming years, as they will find it hard to meet their day to day expenses during the retirement period.

The UK government is also planning to implement National Retraining Scheme to make sure that the retired employees are adapting themselves to new skills to make their lives better post their retirement.

Interestingly, many people above the age of 60 are still unable to retire, as their children are still depending on them to lead their lives.

According to the figures released by the office for national statistics, 10.1 million people aged over 50 are in work, and out of them, 1.2 million are aged over 65. Ten years ago, people who worked at the age of 65 was just 700,000, while in 1998, it was just over 400,000.

The UK government is reportedly planning to increase the retirement age to 66 in 2020. Government authorities believe that the retirement age will reach 70 by 2050, and 71 by 2060.