Barclays found from a global survey of 2,000 high net worth individuals that the HNW in the US are shunning traditional retirement and instead continuing to work, start businesses and take on new projects in their later years. 

Barclays Wealth refers to the concept of “nevertiree” in its latest Insights report, entitled, The Age Illusion: How the Wealthy are Redefining Their Retirement.

For 63 per cent of the US’ wealthy, simply reaching the normal age to retire is not at all important in determining when they stop working.

Forty per cent of US HNW individuals “completely agree” that they are “totally confident” in having enough money for retirement, with another 37 per cent “slightly agreeing”.  Only 48% of US HNW individuals would completely classify themselves as financially secure. 

The report also explores how the wealthy in the US compare to their global peers. Seventy five per cent of US respondents plan to work part time after they have stopped working permanently, seven per cent more than the global average.  Specifically, 32 per cent plan to work between five and 20 hours per week in retirement, and seven per cent plan to work more than 20 hours per week.

 “While previous generations looked to create their wealth early on in life with a view to enjoying it when they retired, this report reflects a different attitude, with people wanting to continue to challenge themselves well beyond the traditional retirement age,” Matt Brady, head of Wealth Advisory, Americas at Barclays Wealth said in a statement.

The attitudes highlighted in the report carry important wealth management implications, Barclays Wealth argues, as it means some “nevertirees” might ignore the need to solve issues such as succession planning, writing a will and providing for life after work.

The report also comes at a time when developed countries are wrestling with the issue of how to fund an increasingly ageing population, made more acute by the recent financial crisis. On the other hand, improving healthcare and changing patterns of work mean it is increasingly feasible for some, if not all, employed persons to contemplate a longer work life than was the case for their parents.