September 27, 2010

UK: Rich shun retirement to stay in work longer

LONDON, England / The Telegraph / Personal Finance / Pensions / September 27, 2010

By Rachel Cooper

A growing band of wealthy workers, are shunning retirement in favour of staying in work, research has revealed. Rather than bowing out of the office to spend more time on the golf course, 60pc of wealthy individuals in Britain intend to carry on working for as long as they are able.

A report by Barclays Wealth found wealthy workers in the UK were among the most inclined to keep their nose to the grindstone. Some 54pc of workers in the US want to carry on working, but only 34pc in Switzerland plan to work beyond retirement age.

 Wealthy workers iwere among the most inclined to keep their nose to the grindstone, the survey found. Photo: GETTY

The research, conducted amongst 2,000 "high-net worth individuals", found that people would rather spend their retirement working, starting up a new business or pursuing new projects. This band of people has been dubbed "nevertirees".

David Semaya, head of Barclays Wealth, UK and Ireland Private Bank, said: "There are a number of factors driving the notion of 'nevertirement', and whilst higher life expectancies and concerns about an unpredictable economy are almost certainly relevant, it is fascinating to see that wealthy people are continuing to work for a variety of other reasons, and that this appears to be something that is set to continue."

But Phil Smith, head of financial planning at Barclays Wealth, warned postponing retirement should not mean people put off their financial planning for the future. The research found that only half of respondents felt financially responsible for their children, with just over a third of rich individuals in the UK saying they would not pass on their wealth to their offspring.

"There can be a tendency for people to shy away from succession planning as they believe it to be difficult. However, given that this group may continue to increase their wealth, there is a very strong case here for robust succession planning much earlier than people expect," said Mr Smith.

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