For years, the financial industry has sounded alarm bells about a looming pension crisis, declaring that people will fall short of funds by the time they hit their 60s. And they’re not wrong—if we look solely at financial capital, things do indeed look bleak. Research by Phoenix Insights suggests that more than half of future retirees with defined contribution pensions will be undersavers or financially struggling within the next two decades. So, yes, the crisis is real. But here’s the thing: a “hard stop” at retirement age may not be necessary or even desirable, given the longer, healthier lives we’re all set to enjoy.
Imagine if, instead of only focusing on ramping up savings, we explored the potential of human capital—our skills, experience, and, perhaps most importantly, our ability to contribute meaningfully well into our later years. Shouldn’t we as a nation be looking at how we can create economic opportunities for older adults to continue doing work that not only supports them financially but also contributes to their well-being in mind, body, heart, and spirit?
Moving Beyond a “Stop-Work” Mentality
The traditional idea of retiring in one’s early 60s, often into inactivity, has little to do with the reality that many of us face today. For starters, retiring at 65 with enough financial capital to fund a comfortable 25- or even 30-year retirement is, for many, out of reach. But more than that, research shows that people who remain active, socially engaged, and purpose-driven later in life tend to have far better health outcomes and a stronger sense of life satisfaction. Rather than seeing older adults as “past their prime,” we could recognise their wealth of experience, adaptability, and resilience, creating roles that allow them to keep adding value—financially and socially.
This isn’t about “working forever” or denying anyone a restful, well-earned retirement. It’s about shifting perspectives to see work as something we can continue to do meaningfully, even after reaching a traditional retirement age. When work becomes an extension of who we are, contributing to our purpose and well-being, it no longer feels like a burden but rather a choice that benefits everyone.
An Economic Model for Wellbeing
Of course, the financial capitalists would like nothing more than for everyone to throw more assets their way. But middle Britain is already financially stretched. What if, instead of siphoning even more fees from hard-earned pension pots, the industry focused on creating pathways for people to keep earning and contributing in a way that doesn’t feel like “work”? This doesn’t mean simply extending everyone’s current jobs but looking at what truly fulfils people—jobs that align with their values, foster social connections, and encourage continuous learning.
Imagine industries and communities rallying around this idea, with policies designed to make work accessible, sustainable, and beneficial for the over-60s. Jobs that offer flexibility, account for physical limitations, and emphasise the value of wisdom could replace the rigid “retire or don’t” approach we currently have. In this vision, retirement isn’t a “drop-off” point but a transition—a chance to explore new roles that feel rewarding and are conducive to well-being in mind, body, heart, and spirit.
What Needs to Change
To address this growing issue, policies could focus on two critical areas: sustainable pension contributions and creating meaningful work options for older adults. By raising minimum enrolment contributions and incentivising employers to make roles accessible to the over-60s, we can help ensure financial stability while promoting a more inclusive workforce.
Beyond policies, we need to change the narrative around retirement. The real “crisis” isn’t just in underfunded pensions; it’s in how we view ageing and retirement. By embracing a model that values human capital—our abilities, ambitions, and contributions—we stand to gain a workforce that is vibrant, resilient, and resourceful.
Conclusion: A National Shift in Mindset
The pension shortfall facing us isn’t an issue we can solve with a few policy tweaks or an extra percent in savings rates. It calls for a complete shift in how we think about retirement and the role of older adults in society. As we look toward a future where people live longer, healthier lives, it’s high time we stopped viewing the end of a working life as a drop-off point and started seeing it as a chance to contribute in new, fulfilling ways.
Let’s embrace a future where everyone, regardless of age, has the chance to pursue meaningful economic activity that supports not only financial needs but also personal well-being. By making work accessible, flexible, and fulfilling well into our later years, we can redefine retirement as a time of choice, purpose, and ongoing contribution—not a cliff edge but a new horizon.
Questions & Answers
Q: Why is there talk of a pension “crisis” in the UK?
A: The “crisis” is rooted in the reality that many people aren’t saving enough to fund a long retirement. With increasing life expectancy, people will need more funds to maintain a comfortable lifestyle, but traditional savings aren’t keeping up. As a result, many of us might enter retirement with less than we expect or need. But here’s the good news—by expanding our view beyond just financial capital and exploring options for earning later in life, we can build a future where “retirement” is fulfilling and achievable.
Q: So, what exactly is ‘human capital,’ and why does it matter for retirement?
A: Human capital refers to the skills, experience, and abilities we’ve developed throughout our lives. In retirement planning, it’s often overlooked in favour of financial capital, like pensions or savings. But human capital is a powerful asset! It enables us to stay active, purposeful, and financially resilient by allowing us to continue contributing to work that feels meaningful, even beyond traditional retirement age. By focusing on human capital, we don’t just rely on savings—we gain flexibility, purpose, and, yes, continued income in ways that align with our values and interests.
Q: Does this mean people should expect to work forever?
A: Not at all! This isn’t about forcing anyone to work longer than they wish. Instead, it’s about creating options for those who want to continue contributing in a way that enhances their well-being. The idea is to make work an option, not an obligation—work that is enjoyable, flexible, and supportive of mind, body, heart, and spirit. Many people find that having meaningful work is part of a fulfilling life, regardless of age. It’s about choice, not compulsion.
Q: How can continuing to work later in life benefit my overall well-being?
A: Staying active and engaged can boost both mental and physical health, leading to a greater sense of purpose and community connection. When work aligns with personal values and offers flexibility, it’s a win-win. It enables you to pursue passions, develop new skills, and interact socially—all of which are essential to well-being in later life. Plus, this isn’t about sticking with your old job unless you want to; it’s about finding roles or activities that excite and inspire you.
Q: What steps can we take as a society to support older adults who want to keep working?
A: Supporting older adults means making work accessible, flexible, and inclusive. Policies can help by increasing pension contributions to ensure financial stability and by creating roles that welcome older adults, offering part-time, flexible, and remote options. We can foster a culture that values experience and supports ongoing personal and professional development, helping us all feel more empowered and connected as we age.
Q: How does this approach impact middle-income households that feel financially stretched?
A: This approach is especially beneficial for middle-income households. Instead of solely relying on savings, which can be challenging to grow in today’s economy, people can explore earning opportunities that don’t feel burdensome. This eases financial stress, provides a sense of security, and offers freedom to choose work that suits personal needs and interests without compromising quality of life.
Q: Isn’t it the responsibility of financial professionals to help with these challenges?
A: Absolutely! Financial professionals have a responsibility to look at the whole picture, beyond just financial products. Instead of only focusing on saving more, they can guide people in making the most of their skills and interests to create financial resilience. A holistic approach to retirement planning considers both financial and human capital, aiming to support people in building a life that’s fulfilling and financially stable.
Q: How can someone start planning for a retirement that includes human capital?
A: Begin by considering the work or activities you enjoy most—things that energise and fulfil you. Think about roles or projects that allow you to use your skills and experience. Working with a holistic financial planner can help create a roadmap, showing you how to align your future goals with your strengths and values. The goal is to build a retirement that feels meaningful, financially secure, and aligned with your unique sense of purpose.
Q: What’s the main takeaway here?
A: The main takeaway is that retirement planning isn’t just about how much you save—it’s about how you envision your future. By embracing human capital alongside financial capital, you’re opening up new possibilities. Retirement can be a phase of choice, exploration, and contribution rather than a hard stop. With the right support, you can create a retirement that aligns with your values, sustains you financially, and keeps you connected, fulfilled, and thriving well into your later years.
This approach redefines retirement as a chapter filled with purpose, flexibility, and engagement—where financial stability and personal fulfilment come hand in hand.
Academy of Life Planning 
The reality of retirement is shifting, and it’s more complicated than simply “working till you drop” or hoping to scrape by on the state pension. For many, the vision of retiring in our 60s, even 70s, seems increasingly distant. But perhaps there’s another way to look at this.
Instead of seeing longer working lives as an obligation, what if we explored the potential of flexible, fulfilling roles that add value and keep us engaged? With a bit of creativity and policy support, work in later life doesn’t have to be a grim necessity but an opportunity for purpose, connection, and financial stability. The problem isn’t in continuing work—it’s in being forced to do so without viable options or fair tax policies in place.
We need the government to take a balanced approach, recognising that people want to save for a secure retirement, not one stripped down by tax hikes. Let’s redefine retirement, yes, but with choice, flexibility, and dignity.