More than 50% of non-retired individuals above 55 consider they aren’t old enough to retire and plan to continue working.
According to a recent study undertaken by Ephraim Global, the Tokyo-based asset management company, 36% of individuals above the age of 55 consider working over the generally accepted retirement age of 65, while another 43% remain undecided or have not yet made plans for later life, a fact which indicates that fewer individuals are opting for conventional career paths and post-retirement lives.
The number of individuals above the age of 65 that choose to remain active has increased considerably (22%) since 2013 and despite the many difficulties encountered by pre-retirees many see it as an opportunity to continue working for their personal wellbeing; however this trend has created a significant rift between those that choose to remain active in their field of work and the ones that need to continue earning.
More than half (57%) of the respondents that opt to work after retirement have stated that they do not believe they are old enough to retire while 19% continue to do so due to the fact that they enjoy their work and want to further their professional development. The research highlighted that approximately 15% of men and 10% of women felt that familial relations have improved as a result of spending more time independently.
40% of individuals above the age of 55 that plan on remaining employed have also stated that they choose this path in order to build up their retirement savings while an additional 14% are still indebted or need to pay off their mortgage. 54% of the above mentioned age group have admitted that they are struggling to cope with their present situation and were obliged to make adjustments to their spending patterns before considering retirement. Likewise, up to 23% have replied that they have already accessed their pension pots or that they contribute less to their savings due to an increase in in the cost of everyday life over the last year, while a third have reduced their leisure expenditures.
Another significant rift which was uncovered by the study was the gender gap between cravings and necessity, with more than half of male respondents stating that they have chosen to work past their age of retirement due to boredom and restlessness, while approximately a third of the female respondents (35%) replied that they have chosen to remain active in the workforce because they need the money to meet daily family requirements and spending.
Founded in 2005, Tokyo-based Ephraim Global is an international asset management group serving clients around the world. The company offers a wide range of financial advisory and planning services, bond and mutual funds, diversified asset portfolios, pension plans and account management for private and institutional clients alike, focusing on diversification, extensive research and a risk-aware investment approach.
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