Aegon Fact sheet flexible retirement in the United Kingdom

Aegon Fact sheet flexible retirement in the United Kingdom

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  United Kingdom Defined benefitpensions have traditionally played a major role in supplementary pensions but also lead to limited flexibility as to when to retire. Plans to allow a more flexible DB arrangement (“DB light”) were dropped in 2014. However, the abolition of manda- tory retirement ages (previously fixed at age 65) proved a major, though controversial, milestone toward flexible retirement. This has been backed with more generous arrangements for deferred social security payments. Benefits can be deferred for up to five years resulting in a higher, actuarially adjusted pension (about 30 percent higher than taking it at age 65). The government has also accel- erated increases in the state pensionable age. Retirement age will be equalized between men and women at 65 years in 2018 before rising to 66 in 2020 and 67 by 2028, with a further increase to 68 planned. People will also be offered more flexibility in how they invest and draw down their pension benefits following reforms in April 2015 which scrap compulsory annuitization. the United Kingdom?How is flexible retirement viewed in How do workers envision their retirement? Key country indicators Global 27% Global 55% Global 48% Global 70% Global 9% 24 18 17 65 63 60 Global 26% Retire before 65 Retraining or reskilling Flexible transition Move from full-time to part-time Keep active / keep brain alert Belonging to their employer Life expectancy at age 60 Of those age 55+ are offered retraining or reskilling opportunities Of those age 55+ expect to retire before 65 Of those age 55+ envision a flexible transition to retirement Of those age 55+ say their employer offers the opportunity to move from full-time to part- time employment Of those age 55+ who envision a flexible transition to retirement do so because they want to keep active Of those age 55+ say they feel a strong sense of belonging to their employer Health life expectancy at age 60 % of population age 65+ Official retirement age (when full entitlements are payable) Effective retirement age (actual age of labor market exit) Labor market engagement of older people (employment rate) United Kingdom 12% United Kingdom 5% United Kingdom 61% United Kingdom 33% United Kingdom 78% United Kingdom 40% United Kingdom Are employers supporting a flexible retirement?
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  United Kingdom This countryprofile is part of the report “The New Flexible Retirement” and contains research findings from the fourth annual Aegon Retirement Readiness Survey. Sources of the key country indicators included in this country profile: • Life expectancy at age 60: World Health Organization, Global Health Observatory Data Repository • Health life expectancy at age 60: The Institute for Health Metrics and Evaluation, Global Burden of Disease Study, 2010 • Percentage of population age 65 plus: World Bank • Official retirement age (when full entitlements are payable): OECD Pensions at a Glance 2015* • Effective retirement age (actual age of labor market exit): OECD Society at a Glance 2014* • Labor market engagement of older people (employment rate): International Labour Organisation, Employment-to-population ratio by sex and age * where the official and effective retirement age is different for men and women, we have calculated an average About: Aegon Center for Longevity and Retirement The Aegon Center for Longevity and Retirement (ACLR) is a collaboration of experts assembled by Aegon with representation from Eu- rope, the Americas, and Asia. The Center’s mission is to conduct research, educate the public, and inform a global dialogue on trends issues, and opportunities surrounding longevity, population aging, and retirement security. www.aegon.com/thecenter Transamerica Center for Retirement Studies® The Transamerica Center for Retirement Studies (TCRS) is a division of the Transamerica Institute, a nonprofit, private foundation. TCRS is dedicated to conducting research and educating the American public on trends, issues, and opportunities related to saving, planning for, and achieving financial security in retirement. Transamerica Institute is funded by contributions from Transamerica Life Insurance Company and its affiliates and may receive funds from unaffiliated third parties. TCRS and its representatives cannot give ERISA, tax, investment or legal advice. www.transamericacenter.org Disclaimer: This report contains general information only and does not constitute a solicitation or offer. No rights can be derived from this report. Aegon, its partners and any of their affiliates or employees do not guarantee, warrant or represent the accuracy or completeness of the information contained in the report. Contact Information: Headquarters Aegon N.V. Aegon Center for Longevity and Retirement Mike Mansfield Manager Retirement Studies Telephone: +31 70 344 82 64 Email: [email protected] www.aegon.com/thecenter Media relations Telephone: +31 70 344 89 56 Email: [email protected]