A NEW SURVEY has revealed that more of us are planning to never stop working - and have no plans to ever retire, creating a new breed called the “Nevertiree”.

Barclays Wealth say that 60% of wealthy individuals interviewed in their survey say the concept of retirement is being rejected by people who want to carry on working until they drop.

With the Isle of Man having a high proportion of high earners, the survey clearly applies to the Manx workforce too. The report, the 12th in the Barclays Wealth ‘Insights’ series, is based on a global survey of 2,000 high net worth individuals globally, who were asked to consider what retirement and later life means to them.

The findings show that the concept of “Nevertirement” is expected to become more popular over the coming years, with 70% of respondents under the age of 45 saying that they will always be involved in some form of work. Whilst a desire to remain in work might be expected to chime with business owners and entrepreneurs, the findings apply to all wealthy respondents, with 57% of those who inherited their wealth saying they too will continue working in later life.

Although the emerging markets show the biggest desire to keep on working in later life, the UK leads the way amongst the developed economies. In the US, 54% of respondents expressed a desire to carry on working, with Switzerland (34%), Spain (44%) and Japan (46%) more likely to opt for a conventional retirement.

Top 5 ‘Nevertiree’ countries in Europe

UK 60%

Ireland 59%

Monaco 58%

Spain 44%

Switzerland 34%

Greg Davies, Head of Behavioural Finance at Barclays Wealth said, “Whilst in previous generations there have always been an energetic few with the health and specific drive to keep actively challenging themselves well past the standard retirement age, many 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 wealthy individuals as a group wanting to continue to challenge themselves well beyond the traditional retirement age, which is now likely to comprise a significant proportion of their total lifespan. Indeed, for many their working life is an important part of who they are – it is something from which they derive self-worth and value, and not just a necessary evil to be endured until they can enjoy a leisurely retirement.” 

Rather than look to later life as a time of leisure or years of old-age, 77% of Nevertirees view this period as ‘just another phase of their life’, suggesting that the traditional retirement age no longer marks any significant milestone in terms of their general lifestyle.

However, the report demonstrates that as well as wanting to keep on working, the wealthy are using the later years to re-examine their options with regards to work, looking for different careers and positions, often moving from the role of execution and control to that of influence.

The report cautions that continuing to work could mean that important succession issues remain unresolved, as the wealthy continue to put their efforts into working life. While retirement was traditionally a time when individuals would make plans for passing on their wealth, Nevertirees in the UK are in danger of leaving these decisions unresolved.

With only half (51%) stating that they feel financially responsible for their children and when asked if they wish to leave a sizeable amount of wealth to their family, the UK is one of the countries least likely to do so, with just over a third (35%) saying they will not pass on their wealth. This is despite the same proportion of respondents saying that their children will be less wealthy than them.

Phil Smith, Head of Financial Planning at Barclays Wealth UK and Ireland Private Bank says, “Even though people may be retiring later this certainly does not mean that they should put off succession planning. It actually means that they should start planning much earlier as their wealth will only increase and the situation can become more complex. 

There can be a tendency for people to shy away from succession planning as they believe it to be difficult however given that this ‘nevertiree’ group may continue to increase their wealth then there is a very strong case here for robust succession planning much earlier on than people expect.”