Standard Life estimates that working three days each week from 66 to 70 could significantly increase pension pots. New research by Standard Life, part of Phoenix Group, suggests that people who gradually ease into retirement by working one, two or three days each week for a few years after reaching 66, could boost their pension pot by as much as £87,000. The analysis found that less than one in five (17%) current retirees moved to part-time work once they reached retirement age, with the majority (76%) stopping work entirely.
However, according to Standard Life’s Retirement Voice report , younger generations plan to wind down their working hours, with almost half (47%) of 18 to 24-year-olds anticipating moving into part-time work, while 29 per cent expect to stop work completely. With younger generations intending to carry on working part time after reaching retirement age, Standard Life has conducted analysis which highlights how a gradual wind down of work can add a significant amount to the overall value of a pension pot. For example, someone that began working on a salary of £25,000 per year and paid the minimum monthly auto-enrolment contributions (5% employee, 3% employer) from the age of 22, could have a total retirement fund of £434,000 by the age of 66.
However, Standard Life estimates that someone retiring at 66 with a pension pot of £434,000 could boost it by £71,000 by working just one day each week until they reach 70. Similarly, those working two days per.