By Lois Avery
Pension reforms will give retirees more flexibility when it comes to work and savings - that’s the message from industry experts.
Insurer Aviva has praised the government’s pension reforms, which will see an end to the default retirement age next year.
Their Real Retirement Report predicts a shift in how people will approach retirement, with almost 700,000 people each year having the freedom to stop working at a time which suits their individual lifestyles and finances.
This comes after findings showed that a third of retirees said they were pushed into retirement because their employer suggested it or because they ‘reached the normal age' at their workplace.
Clive Bolton, 'at retirement' director from Aviva, said: “The removal of the default retirement age provides people with the freedom to design their own retirement. Some people will naturally choose to stop work when they start claiming their state pension, but many are likely to continue working as they genuinely enjoy their roles and gain both social and financial benefits.
“As part of this move to DIY retirement, we expect to see more people down-shift their careers as they look for more flexibility and less pressure in the final few years of their working life. However, that said, a fifth of people retire due to health issues so while people can choose to work into later life, any additional boost to their finances should not be relied upon."
John Lawson, head of pensions policy at Standard Life agrees the change will give pension savers more flexibility to fund their retirement. He also says that the government’s decision to scrap compulsory annuitisation should help encourage more people to save for the long term.
