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Retirement is Dead

4th February 2015 by Gareth Hopkins

I will be 68 before I am eligible to draw my state pension - as it stands. The age I actually draw my state pension is anyone's guess, but I would place a small wager it is closer to 100 than 68. 

According to the Office for National Statistics, 1 in 3 babies born in 2013 will live to 100. So, as it stands, it is predicted that those who live to 100 will draw their state pension for 32 years - this is, simply, unaffordable.  

The Pensions Act 2014 allows the Government to review the State Pension Age (SPA) at least every 5 years - the first is due by May 2017. In light of one's audacity to live to (or even past) 100, and the current state of austerity, It would take an optimistic soul to suggest the SPA will remain unchanged post May 2017. In fact, in the not too distant future, the idea of 'retirement' will be nothing more than a pipe dream.   

The perception is that the State Pension Age and retirement are inextricably linked but, in reality, many remain in employment past their SPA - the reasons are, broadly, two-fold. First and foremost, the State Pension is too modest to retire on, and people are not saving enough for retirement. Secondly, believe it or not, people are starting to value the health benefits of working for longer. 

Research has found that retirement can cause a dramatic decline in health. The study - Work Longer, Live Healthier: The relationship between economic activity, health and government policy - found that the likelihood of depression can increase by 40% for those who retire, with the possibility of physical deterioration also increasing significantly when finishing work. 

Working longer will benefit the UK economy, and promote healthier living so, postpone that white sandy beach, in favour of Microsoft Excel for that little bit longer. Retirement is dead – but that’s a good thing. 


Gareth Hopkins is Director at GJH Pensions. To keep up to date with all the latest GJH Pensions news you can subscribe to our newsletter here or follow us via twitter @GJHPensions. GJH Pensions are an independent consultancy offering practical solutions to all things pensions. Our industry expertise, and personal approach, means we can truly understand the bespoke requirements for each client. Contact GJH Pensions today for a free consultation on 07446 148 537 or email gareth.hopkins@gjhpensions.com.