Older workers have been leaving the UK workforce because they want to wind down, are ill and have family responsibilities, but may end up less financially resilient as a result.
Chancellor Jeremy Hunt has been putting plans in place to prevent the so-called "Silver Exodus" from the workplace, for example, removing the lifetime allowance to make it more attractive financially for people to continue working and paying into pensions.
But according to the latest Great British Retirement Survey from Interactive Investor, 47 per cent of people aged between 55 to 65 have been leaving the workplace because they want to "wind down".
A further 22 per cent cited ill health, while 15 per cent said caring responsibilities meant they had to reduce working hours or give up work completely.
Yet while many were leaving the workforce early, not all were finding it financially viable to do so.
Just 33 per cent said they could retire earlier than state pension age thanks to savings, and only 22 per cent cited having a significant defined benefit pension from their workplace.
Only 14 per cent said they had received an inheritance - with respondents stating they could retire an average of 18 months earlier than those who did not receive an inheritance.
Struggle
However, more people are living much longer into their pensionable years without benefiting from an inheritance - making the decision to retire 'early' more difficult for younger generations.
The research showed only 12 per cent of people believed they could expect an inheritance to form part of their retirement income, with the average retirement age of those receiving an inheritance at 61.5.
One respondent told the study: "Without an inheritance I would struggle to retire at all", but with the rising cost of care, most respondents believed any wealth in the older generations would be "used up" by the needs of the erstwhile benefactors.
Speaking at the House of Lords earlier this week to unveil the research, Richard Wilson, chief executive of interactive investor, commented: "Inheritance may be easing retirement finances, but it is no longer forming the core.
"Inheritance is no-one's golden goose, so people are needing to look after themselves."
Earlier today (October 19), Just Group’s 2023 Countdown to Retirement research revealed that 51 per cent of people aged 55 and above did not know what the threshold is for the value of an estate to pay IHT, with a further 8 per cent of the respondents stating they were not sure.
As reported by FTAdviser, 50 per cent of respondents said they did not have a clear understanding of the IHT rules and the amount that can be passed on before tax.
Financial resilience
According to Myron Jobson, senior personal finance analyst for Interactive Investor, life events are making even the younger generations less financially resilient, meaning their plans to retire early may have to be reconsidered.
Also speaking at the House of Lords to unveil the Interactive Investor report, Jobson said the "biggest life event affecting people's financial resilience" and ability to save for retirement was ill health, at 31 per cent, with a further 18 per cent citing having to care for a family member through their illness.
