63% will not have sufficient pension pot by age 65

Almost two-thirds (63%) of respondents believe they will not have a sufficient pension pot by the age of 65, according to research by Canada Life Group Insurance.

Its research, which surveyed more than 700 employees, found that 10% intend to continue working past the traditional retirement age to continue receiving employee benefits.

The research also found that two-thirds (66%) of respondents believe they will work past the age of 65, which has almost doubled since October 2012, when 35% believed they would work past the traditional retirement age. 

Almost a quarter (24%) of respondents said they will have no choice but to work beyond 65 because of the recession, while an additional 31% were already considering working beyond the age of 65, but are now likely to have no alternative.

The research found that 65% of respondents said the rising cost of living means they will need to supplement their pension with a wage, which far out-weighs the 28% who said they wish to continue working beyond the age of 65 because they enjoy their job.  

The research also found that, among respondents who plan to work beyond the age of 65, 18% said that critical illness cover would be the most useful employee benefit, while 16% named group income protection as the most useful.

One-fifth (20%) of respondents said the issue that will most affect employees due to the ageing workforce is a change in working dynamic because older people have more health issues.

Paul Avis (pictured), marketing director at Canada Life Group Insurance, said: “The concept of retiring at 65 and no longer earning a wage is fast becoming antiquated, as more and more employees accept they will be working long beyond the traditional retirement age.

“Increased life expectancies and recent economic difficulties have boosted the proportion who feel they will be forced into working longer than they want to in order to afford the rising cost of living.

“Employees considering working beyond the traditional retirement age should acknowledge the importance of appropriate workplace benefits, particularly as an older workforce will inevitably suffer from more health issues.

“Group benefits, such as income protection and critical illness cover, will ensure incomes are protected in the event of an accident or serious illness, preventing people from having to push back their retirement even further due to unexpected gaps in income.”