On average UK adults aged 50 to 70 think they need £403,000 to feel secure about their retirement.
Research by Just Group and 55/Redefined, found a shift in attitudes towards retirement with 61 per cent looking for some kind of continuation in the workplace.
A fifth of respondents defined retirement as phasing gradually, while 42 per cent defined it as having enough financial security to choose whether to work or not.
The survey, which asked 3,522 adults aged 50 to 70, found 32 per cent felt they had retired earlier than they wanted to because of a lack of flexibility, career opportunities and being unable to find work.
In fact, 62 per cent of those surveyed said they would take a pay cut of some kind in exchange for a better work/life balance.
Lyndsey Simpson, chief executive of 55/Redefined, said: “We have professionals willing to accept lower pay for flexibility and purpose, yet they���re being told they’re not valued.
“Employers are about to lose talent they don’t have time or money to lose.
“Employers must act now to create age-inclusive cultures that offer flexibility, purpose, and progression. It is clear to me that we must see retirement as a journey rather than a full stop.”
Financial security continues to be a large driver of retirement decisions with 45 per cent concerned they would outlive their savings and 39 per cent feeling inflation would erode their purchasing power.
People in Wales were the region most worried about their retirement with Welsh respondents saying their ideal retirement pot would be £277,659.
However, the report revealed 46 per cent have less than £100,000 in DC savings, while a quarter had less than £10,000.
For those aged 50 to 70 not planning to retire soon, 87 per cent believed personal passions and growth were the most important ingredients in a happy retirement, ahead of money.
Despite this, 30 per cent said soft skills and experience were not recognised by employers with 35 per cent attributing this directly to ageism.
Ellie Evans, group chief People officer at Just Group added: “At Just Group, we believe that recognising the value of experienced workers is not only inclusive, it makes good business sense.
“We’re proud to see age as an asset not a barrier. As people live and work longer employers will need to adapt to attract and retain older workers, making the most of the wealth of skills and experience they offer.”
alina.khan@ft.com
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