| UK workers increasingly prefer a gradual retirement which balances financial stability, purpose and wellbeing | Uncertainty around pension rules can affect confidence, leading to rushed or potentially regrettable financial decisions | Careful planning and professional guidance help ensure retirement choices align with long-term goals and lifestyle |
More people are rethinking what retirement looks like. Instead of a ‘hard stop,’ many are choosing a more gradual, flexible transition. In fact, a recent study1 showed fewer than one in four UK workers expect to give up work entirely when they reach retirement age. Most plan to ease into retirement (43%) through changing how they work, by staying in their current role a little longer (15%), or by moving into something new (9%).
A fine line – wellbeing and finances
A phased retirement can take many shapes. For some, it means reducing hours; for others, shifting into consultancy, project work, mentoring, or even exploring a new field altogether. This softer transition can help maintain financial security, preserve purpose and routine and support wellbeing at a stage when priorities naturally begin to shift.
Confidence to make decisions you won’t regret
The research also highlights understandable concerns. Many people approaching retirement worry about the complexity and uncertainty surrounding pension rules and tax treatment. Without clarity, it can feel difficult to make confident decisions – sometimes prompting people to take a lump sum or start drawing income earlier than is right for them.
Aegon’s Pensions Director, Steven Cameron, notes that we’re living through a “significant cultural shift” in how people approach later-life work. With this shift comes the need for a stable, predictable pension environment that allows individuals to plan with confidence.
Support as your plans take shape
Taking time to reflect, plan and seek advice can make all the difference. A gradual retirement should feel empowering not overwhelming. Whatever path you choose, we’re here to help you understand your options and make informed decision that support both your finances and your broader wellbeing.
1Aegon, 2025
It is important to take professional advice before making any decision relating to your personal finances. Information within this article is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored advice and is for guidance only. Some rules may vary in different parts of the UK.
