Nearly a quarter (24 per cent) of UK adults expect to ‘never really retire’, research from Phoenix Group has found, highlighting a "significant" difference in perceptions around how people have retired in the past and what this could look like in future decades.

The research pointed out that the biggest difference between retirement perceptions in the past and the future was an anticipated increase in people never really retiring as they need or want to keep working.

Indeed, 41 per cent of UK adults expect this to be normal in the next 10 to 25 years, up from 13 per cent in the past.

The research also found that only 15 per cent of UK adults thought a hard stop or transitional retirement would represent most people’s experience in the next 10-25 years, despite being to the most prominent way people have moved into retirement over the past 50 years.

In addition to this, the research looked at hopes compared to expectations of moving into retirement, revealing that 44 per cent are hoping for a hard stop, 47 per cent are hoping for a period of transition, and 9 per cent hope to keep working.

However, when looking at genuine expectations of moving into retirement, 30 per cent expect a hard stop, 46 per cent expect a period of transition, and 24 per cent expect to keep working.

In addition to this, just over half (52 per cent) of those who have still to retire who are hoping for a hard stop realistically expect to achieve this, while one in five (19 per cent) of this group think they will actually have to keep working.

Phoenix Group also suggested that retirement as a period of transition, where people reduce the time they spend working and balance it with doing other things, is expected to continue to be the most common experience.

Phoenix Group head of public engagement and campaigns, Catherine Sermon, said the idea of a hard stop retirement has "long been superseded" by people looking to reduce their working hours and gradually transition into retirement, with many working part-time while drawing on some of their pension to supplement income.

“Moving forward, however, while a gradual transition into retirement is expected to remain popular, our research suggests a sea change is looming, with a significant rise in people anticipating they will carry on working throughout their life,” she explained.

“It’s vital that this changing approach to retirement is matched by how people are supported in work and saving throughout their life."

Sermon continued: “There will need to be more flexibility so people who want or need to remain in work for longer are able to do so.

“This should go hand-in-hand with policy change to help people save more. Millions of adults are off track and not saving enough to provide the retirement income they expect and may end up delaying their retirement plans as a result.

“Increasing the minimum auto-enrolment contribution rate being made into workplace pension should be a high priority in the next parliament to help close some of pension savings gap.”

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