Millions of workers face their 'retirement age' rising by nine years

Dramatic "shifts" in retirement patterns will see many Britons working until age 71, it has been warned. Both men and women are retiring on average at 64, it has been found by new research, as a shake-up to people's retirements continues.

The warning comes after women typically retired in their mid-50s back in the 1990s - but now it has risen to 64. People are starting and stopping work later in life, remaining in education for longer than previous generations and delaying retirement. In 1994 around one in four (27%) 18-year-olds were students, whereas today (2024) this is nearly half (48%). At the other end of people’s careers, in 1994 around three in four (73%) 65-year-olds were retired, compared to just over one in three (39%) in 2024.

Patrick Thomson, head of research analysis and policy at Phoenix Insights, Phoenix Group’s longevity think tank said: "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."

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Mr Thomson continued: "Women also now make up a much bigger part of the workforce and greater workplace flexibility means more people now transition to retirement gradually, staying in work for longer on reduced hours.

"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.