Retirees can expect a “time bonus” of 18 happy years

Research has found that the difference between the average age when retirees stop working, and the age at which they consider themselves ‘old’ is a staggering 18 years, highlighting that those still in work can expect to enjoy almost two happy decades when they finish working.

The global study conducted by leading insurer AXA was commissioned to examine the perceptions and realities of retirement amongst both workers and retirees, and revealed that UK workers think they will retire at the age of 62, and consider themselves ‘old’ at 72 - meaning they anticipate only ten years of an active retirement. However the reality is very different - retirees tended to finish work at age 60, but don’t consider themselves to be ‘old’ until the age of 78. This is in stark comparison to Hong Kong and China, where the age of “oldness” is 63 and 66 respectively.

The research also shows that many British retirees enjoy retirement with 40 per cent saying they are “very happy” compared to 32 per cent of those currently working. In addition, 80 per cent have positive associations with retirement putting retired Brits ahead of their counterparts in a number of countries including USA (55 per cent), Italy (39 per cent) and Portugal (36 per cent).

Financially, the picture is better too – just over half of all workers (57 per cent) think they will have enough to live on in retirement, but almost two in three (64 per cent) retirees say their current retirement income is sufficient – up from 57 per cent last year.

Steven Folkard, head of pensions and savings policy at AXA commented: “Retirement is generally seen as a new, golden era. There can be some feelings of trepidation and a suspicion that life might not be as fulfilling and exciting as it was when working, yet this study dispels those myths. For people in Britain in or approaching retirement, they have never had it so good with many enjoying the retirement experience more than their peers in other countries.”

Over half (55 per cent) of retirees said their standard of living has stayed the same since they retired with a further 17 per cent saying it had actually improved. Today’s retired population also realise how lucky they are and are sympathetic to the plight of the next generation – 83 per cent think they are having a better retirement than their parents did at this stage of life, but only 40 per cent think retirement will be better for their own children.

Steven continued: “Retirees clearly don’t think of themselves as old and past it. They’re generally healthier, they’re wealthier than they think and they’re set for a long period where they can live a whole new life, without the stresses and strains of having to work.

”Of course there are exceptions to every rule, and this peace of mind comes with careful forward planning. Although the majority of retirees say that their retirement income is sufficient people should be aware that having 18 years of a happy retirement could be costly, so it’s important that people plan ahead in order to make the most of their ‘bonus time ’.”