Millions of workers face retirement age being raised by nine years

New research has found dramatic "shifts" in retirement patterns that suggest many Britons may end up working until the age of 71. The study reveals an increase in the retirement age for both men and women to an average of 64, indicative of a broader shake-up in people's approach to retirement.

This marks a significant change from the 1990s when women typically retired in their mid-50s, but as of today, that age has escalated to 64. Various factors contribute to this evolution in career timelines: individuals are engaging in education longer, entering the workforce later, and delaying retirement.

In 1994, just 27% of 18 year olds were enrolled in educational institutions, while in 2024 that figure has nearly doubled to 48%. On the flip side, where approximately 73% of those aged 65 were retired in 1994, only around 39% have retired by that age in 2024.

Patrick Thomson, head of research analysis and policy at Phoenix Insights, part of the Phoenix Group, highlighted these changes: "There have been dramatic shifts in how we retire in recent decades. Thirty years ago, women typically retired in their mid-50s and men in their early 60s. Today, those gender differences have all but disappeared, with both men and women retiring on average at 64."

Mr Thomson also points out that women now form a larger segment of the labour force, and increased flexible working conditions allow many to ease into retirement, opting to work reduced hours while still remaining active professionally, reports Birmingham Live.

"There has also been a trend towards self-employment among the over-50s. This can give people more choice and control over their working life, but may also be due to being unable to find work with an employer."

Phoenix Insights polling suggests the state pension signal may not be as influential for future retirees who think they will want to or need to remain in work. Nearly half (45%) of non-retirees say they expect to remain in work beyond their state pension age.

And this is especially true for those currently out of work who expect to retire on average at 71, compared to 66 for those in work. "Flexible work has been a game-changer for supporting over-50s to continue to work, earn and save later in life," Thomson said, while warning that high rates of economic inactivity among this group remain a concern.