Issues

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

19%
Of 66-71-year olds are still working

56%
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.

29%
Predict or have already downsized their home to boost retirement income

14%
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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