More than 16,000 people in 15 countries were interviewed and
showed that only 29% of UK workers will completely stop working when they are
in their retirement age, while 36% said they will work part time or will be looking
for a temporary contracts and 14% hope to work in some capacity during
retirement. Many of these people are likely to start drawing income from
pension in order to supplement their part time earnings.
The shift in government pension reforms is aimed to provide
greater pensions flexibility in terms that people will be able to take money
from the pension pots before retirement age. However, it is likely that people
who do not earn enough might use income from their pension in order to
supplement their part time income.
Another change in pension reforms is that people are allowed
to continue making pension contributions of up to £10,000 each year, therefore although
people are allowed to take money from their pension pots, they are allowed to
top pension pot still.
The survey has also revealed that only 12% people planned
their retirement, while 39% have no plan. According to Macmillan, it is
important to have a retirement plan as the pension reforms has changed so it is
important to make the best of pension income.
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