My paper for ILC-UK exploring when and why people retire, and how this might change in the future.
An ILC-UK discussion paper which looks at the factors that impact on retirement decisions, and consider how the process of retirement will change in light of current socio-economic trends.
There is evidence that the UK’s average retirement age has started to rise after falling for several decades in the postwar era. But policies such as the raising of the state pension age, and the abolition of the default retirement age, will further transform the financial and policy contexts within which retirement decisions are made.
This paper therefore considers the factors that lead individuals to retire when they do. It looks at current socio-economic trends, to ask whether the future of retirement will match policy change, and what government can do to enable people to extend their working lives. The paper also considers the prospects for gradual retirement, that is, whether the possibility of ‘downshifting’ work commitments as we approach retirement is a realistic and sustainable future.
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Image: David Alliett