Over a third of Brits will have to work during retirement

Over a third of Brits are resigning themselves to the fact that they will have to work either full or part time during their retirement to fund and maintain the lifestyle they want, according to research from Lincoln Financial Group.

Extending the number of years spent in the workplace is now considered the main solution to avoiding a retirement spent in poverty, especially as over two fifths (41 per cent) of people in the UK are doubtful whether they will have enough money to match their lifestyle needs when they reach retirement age. Worryingly, from those aged 55 and over, one in 10 already plan on having to work full time during retirement and almost half (47 per cent) say they will work part-time to maintain their lifestyles.

Lincoln's research also reveals that over one in ten (11 per cent) people are convinced they will not have enough money to last them to the age of 70, let alone longer. As a result, retirees are hoping that by working they can boost their pension pot and be able to afford and enjoy retirement.

Simon O'Connor, Head of Product and Marketing at Lincoln Financial Group, said: "Retirement is often thought of as a time to stop working and start slowing down to enjoy life. However, with over a third of retirees now either working full or part-time and 41 per cent believing their pension pot won't be enough to cover their lifestyle needs; it has become even more apparent that effective planning for retirement is essential.

"Our research reveals that 17 per cent of people want a pension that is going to give them the maximum possible income throughout their retirement. Variable annuities are one way to ensure an income for life with the potential for combating inflation. Variable annuity products that offer an income guarantee can provide a middle ground between conventional annuities and income drawdown, with greater flexibility than a conventional annuity and less risk than a traditional drawdown."

Lincoln Financial Group provides customers with a range of flexible options to take them through each stage of retirement planning, including a personal pension plan for consolidation, an income drawdown for income flexibility and an investment-linked flexible annuity to continue income and investment flexibility after age 75. Lincoln i2Live offers the three products under one umbrella, i2Live Accumulator, i2Live Drawdown and i2Live Annuity, and allows customers to move from one product to the next to suit their circumstances.

For further information, visit lincolnuk.co.uk