Retirees reluctant to rest up

Baby Boomers’ work is never quite done as many continue to bolster businesses, charities and their families when they retire, according to new research from wealth manager Brewin Dolphin.

A survey of almost 2,000 people aged over 50 shows that while one in five (22%) are still working full-time in their primary career, the vast majority (71%) have either retired or part-retired and are making the most of later life. In fact, more than half of people (55%) polled said they gave up full-time work earlier than expected and retired at 57 years old on average. A lucky one in 10 was able to retire under the age of 50.

The research identified three distinct lifestyle approaches for UK retirees: Retirement Returnees, with nearly one in 10 (8%) having either started their own business, working as a consultant or earning money from a hobby; Vibrant Volunteers, with one in eight (12%) having started volunteering for a charity or for the local community; and Family Firsts, with nearly one in six (15%) supporting family members – both young and old.

Retirement Returnees
For Retirement Returnees, money is a key motivator for over half (56%) of them, closely followed by keeping their mind active (53%) and preventing boredom (50%).  However, almost a third (30%) said they decided to pursue a career in later life because it’s something they’re passionate about, while a quarter (25%) see pursuing a new work challenge as a great way to stay socially active.

On average, this group spends 11 hours a week – a total of 572 hours a year – running their own business or working as a consultant. Those doing this type of work in retirement earn £8,500 on average, however some are earning a pretty penny taking home up to £90,000 a year.

Vibrant Volunteers
For Vibrant Volunteers, keeping socially active is the main focus for a majority (58%), alongside keeping their mind mentally active (54%) and meeting new and like-minded people (48%). More than one in three (35%) people in this group say volunteering is something they’re keen to do as they’re passionate about helping a good cause.

On average, people in this group give back around six hours a week – 312 hours a year - of their time to help others, with more than one in ten (11%) saying that they spend between 10 and 20 hours a week volunteering in their local community.

Family Firsts
Unsurprisingly, Family Firsts are driven to help their family. One in 10 (10%) look after grandchildren or younger members of the family as they think it will help them live longer and one in five (22%) believe it helps them stay physically active. They spend around 10 hours a week – almost 22 days a year - looking after children, presumably saving many family members a considerable amount of money on childcare costs.

Meanwhile, Family Firsts helping out older relatives spend around 14 hours a week – the equivalent of 30 days a year - on average lending a hand. Many do it because they want to help family and friends when they can (78%), however over two fifths (41%) said they do so because they feel obliged (41%).

Ambitious Plans
Around a quarter (27%) of people approaching retirement plan to either start their own business, earn money from a hobby or work as a consultant, a quarter (25%) plan to volunteer and a further 20% want to help their family (young and old).

Those wanting to pursue a new challenge when they retire are keen to acquire new skills or retrain. For example, just under half (45%) say they’ll take a class to improve their skills, a quarter (23%) are willing to enrol in college/ university, and one in seven (15%) say they are happy to completely retrain to pursue a different type of career in retirement.

Tim Walker, Divisional Director at Brewin Dolphin in Exeter, said:
“Retirees play a vital role in society and attitudes to retirement have changed - people don’t necessarily stop working altogether; many see later life as a time to learn new skills, give back to the community or help family.  However, for those looking to earn money in retirement, or use their time for social or family good, there will be different financial requirements to consider.

“People may think that retiring in their early 50s is unrealistic, but we’re seeing more people planning a staged retirement - whether its starting their own business, volunteering or helping family – it is increasingly becoming the norm.  This may mean taking a pension later into retirement, or using pension drawdown to fund a new business venture.  Anyone planning a staged retirement may want to seek help before they give up working full-time to ensure that they are financially equipped to follow their hopes for later life.”