UK - Recent economic hardship has not stopped members of DB schemes opting for early retirement, research by Aon Consulting has shown.
But the consultancy firm says while the overall trend of the past two decades for DB members to retire early remains, recent figures indicate a gradual move towards later retirement.
Principal and actuary at Aon Consulting, Paul McGlone (pictured) said: “Whilst there has been speculation that a harsher economic climate has led scheme members to delay drawing on their pensions until later in life, our analysis shows that under DB schemes, the economic climate has not had a major impact on retirement age.”
He added: “At present, members are still drawing their pensions earlier than they were during the 1990s. But as more companies place restrictions on their DB schemes, we are likely to see an increase in average retirement age.”
In the past 20 years, from 1985 to 2000, the average age at which males draw their pension has fallen by about two years, Aon says.
Figures show on average, 50% of men in corporate DB schemes began drawing their pension at or before turning 60, with this trend becoming more common over the years. About 45% of scheme members drew their pension by age 60 in 1985 compared to almost 60% by 2003.
Aon says its analysis shows that although UK companies have increasingly restricted early retirement during this period, mainly due to cost pressures, this has not impacted on the overall trend to draw on pension provision before reaching State Pension Age.
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