More than two fifths (44%) of 55-64 year-olds plan to move into ‘semi-retirement’ before they reach 65 to allow them to draw on their pension savings while continuing to work part-time, research from Aviva has revealed.

Aviva also found that 59% of 18–34-year-olds plan to semi-retire before the age of 65, rising to 61% of those aged 35-44, suggesting that elongated working lives are encouraging younger people to think about a flexible approach to working in later life to maintain their career.

In addition to this, the research revealed that 91% of people described themselves as “much happier” since reducing their working hours, suggesting that semi- or partial retirement could be the answer for more than half (55%) of workers who like the idea of continuing to work through retirement.

Indeed, Aviva explained that the desire to retire early is often driven by individuals wanting to take advantage of more freedom while still well enough to enjoy it, arguing that semi-retirement can offer a mutually beneficial solution for employers and employees.

Furthermore, despite recent concerns around economic inactivity and labour shortage issues, Aviva's research suggested that people are in favour of staying in employment beyond their retirement age.

In particular, the research found that 80% of over-65s said they liked the idea of working through retirement, with at least two in five (41%) of every age group in favour of the idea.

In light of this, Aviva argued that the problems the UK faces with workplace participation will not be exclusively solved by encouraging people to return to work, highlighting the role of initiatives such as the mid-life MOT.

Commenting on the findings, Aviva managing director for wealth and advice Michele Golunska stated: “In a climate where longer working lives are becoming the norm, semi-retirement is a chance to experience the ‘best of both’ which can benefit both employees and employers.

“Retaining connection to their workplace is an appealing option for many people who are still working towards their financial goals or are simply not ready to stop working.

"It also provides an opportunity for employers to continue to harness the knowledge and expertise of more experienced staff for longer.

“We know retirement can look very different for everyone so we want to encourage conversations about retirement long before it happens. Aviva’s Mid-Life MOT app provides a number of tools to help people between 45 and 60 think about themselves more.

“As people live longer, investing time in ourselves and considering every option available in later life is the best way to ensure we have the retirement we aspire to. Starting to think and plan further ahead is a small step that can make a big, positive difference in the long-term.”

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