Part-time work 'can supplement retirement income'
10 May 2012
Individuals coming up to their retirement may wish to consider working on in order to build up the amount of money they will have in their pension.
According to Arthur Childs, managing director of Guildford-based Arch Financial Planning, there are a wide range of options available for those who want to increase their retirement income.
He argued working in a part-time role instead of retiring altogether can be a good way to do this, as people are living longer and healthier lives so do not need to stop work at 65.
Tax changes
Speaking to Citywire, he noted over-65s do not have to pay national insurance contributions, while those who are employed part-time are also subject to different income tax rules.
But for those who are ready to give up work, equity release is another option that is available, as it allows homeowners to unlock money that is trapped in the value of their home.
Although Mr Childs claimed this may not be the first step, it could be a more suitable choice for a lot of people than selling up and moving to a smaller house, or relocating to a different area.
"Most people think now that they will do some sort of part-time employment in retirement to keep things going," he told the news provider, adding individuals may do it because they need the money, or just because it gives them a reason to get out of the house on a regular basis.
Working on
Prudential recently revealed research that indicated a lot of people are happy to continue to work beyond the age at which they would be expected to retire.
Some 40 per cent of those polled by the organisation stated they would carry on in their positions if they were given the chance to do so, with 48 per cent of men and 32 per cent of women giving this response in the survey.
But for those who do not want to work and would instead prefer to look at other options, using the equity release calculator from Key Retirement Solutions could be a good first step to take.
Posted by Richard Planner