Average Baby Boomer predicts they will work on into their 70th year

09 October 2017

Adrian Boulding, Director of Retirement Strategy at Dunstan Thomas

A new nationwide retirement income study of Baby Boomers we commissioned in June found that one in five (19%) 66-71 years are still working full- or part-time to supplement their retirement income, although this entire age group is older than the State Pension Age (SPA).

Of the whole surveyed group of 54-71-year olds that had not yet retired, over half (56%) predict working full- or part-time well beyond the SPA which currently stands at 65-years for men and 64 for women. These Baby Boomers now see themselves working on for an average of four years and two months - so they are (or will be) just over 69-years old when they stop paid work.

Baby Boomers’ overall pre-tax retirement income derived from state and personal pensions and other investment income, averages £23,376 across the entire sample. Retirement income is set to fall as a percentage of final salary – so that 66-71-year olds today calculate their total annual retirement income at an average of £25,323, falling to £20,486 per annum for younger Boomers aged 54-59-year olds.

As the outlook for retirement income levels falls, we are also seeing Baby Boomers looking to areas like downsizing and equity release to supplement their retirement income – 29% of 54-71-year olds said they were likely to or had already downsized to boost their income in retirement, while 14% have released equity from their main home while continuing to live there.

Data Crunch -
*Survey of over 1,000 54-71-year olds resident in the UK conducted by Opinium for Dunstan Thomas

Of 66-71-year olds are still working

Of pre-retirees predict working full or part-time beyond age 65 to supplement retirement income

4 years 2 months
Average length of time 54-71-year olds predict working on beyond age 65

£20,486 per annum
Average anticipated total retirement income for 54-59-year-old Baby Boomers

£25,323 per annum
Average anticipated or actual total retirement income for 66-71-year olds.

Predict or have already downsized their home to boost retirement income

Predict or have already released equity from their primary home

Baby Boomers approaching or in retirement are not adequately advised (for the big infographic bottom left)

  • 17% can accurately predict their retirement income
  • 12% plan to use a regulated financial adviser for Inheritance Tax Planning advice
  • 20% have used (or plan to use) a regulated financial adviser for retirement income planning
  • 17% have sought (or will seek) financial guidance from TPAS, Pension Wise or MAS
  • 36% could not differentiate between regulated advice and guidance
  • 47% plan to do nothing at all to gain more knowledge about pensions pre-retirement

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