The number of people expecting to still be working after they turn 65 has reached a new record high. A study found that 73% of employees expect to keep working beyond the state pension age. This is up from 67% in 2016 and 61% in 2015. These findings formed part of research carried out by Canada Life Group Insurance.
Over four out of five younger workers aged between 25 and 34 are more likely to assume they’ll work beyond the state pension age.
Retiring in your eighties now an expectation for some
Over a third of people intending to work beyond the state pension age say they could even be older than 70 before they finally stop working. But perhaps the more startling response came from 10% of people planning to reach at least 85 when they do retire. And that’s if they retire at all.
However, 23% believe that those aged 41 to 60 are most expected to experience workplace stress. This suggests that these aged workers might feel less inclined to want to work for longer because they find their jobs too stressful.
Low return on savings blamed for 10 million people facing a later retirement
Many employees are blaming the eight years of rock bottom interest rates for forcing them into a much later retirement. Almost a third of UK workers believe that low interest on their savings will force them to work after they receive the state pension – up from 23% in 2016. And in the last year, a further three million people delayed their plans to give up work.
Poor pension savings delays retirement
Many people also feel forced to put back their retirement due to poor pension planning. In fact, 36% of workers say their pension will not be adequate for their retirement. Therefore, they feel that they have no choice but to continue working.
Some positives to later working
But, some people are choosing to postpone their retirement for positive reasons. Perhaps surprisingly, 34% of people said they enjoy their job and wish to continuing working as long as possible. Those aged between 18-24 are most likely to fall into this category, but job satisfaction then drops among 45 to 54 year olds. However, it does pick up again for people aged 55 to 64.
Health concerns become the biggest challenge for older workers
Employees faced with working beyond the state pension age believe that health at 57%, and energy levels at 48%, will become their biggest challenges. This could be because they are more likely to have already suffered from health problems by the time they reach this age. They also consider keeping up with new technology, the daily commute and job satisfaction as other challenges.
Statistically, older workers become more likely to develop certain health conditions than any other age group. Issues like diabetes, cancer and strokes are all common in the ageing population. Therefore, as their workforce ages, employers will need to look ahead and focus on providing employee benefits that support these workers through periods of ill-health and age-related issues.
An article by HR Solutions, providers of practical HR advice