More than a third (36%) of respondents expect to work past the age of 65 because their pension savings will not be sufficient to allow them to afford to retire, according to research by Canada Life Group Insurance.
Its survey of 1,004 UK employees in full or part-time employment, also found that 64% of respondents aged between 55 and 64 believe that health concerns will impact their ability to work beyond 65-years-old, compared to 53% of respondents aged between 25 and 34.
The research also found:
- 73% of respondents expect to work beyond the traditional retirement age, and 84% of respondents aged between 25 and 34 expect to work past the age of 65.
- 37% of respondents who intend to work beyond the age of 65 think they could be over 70-years-old before they eventually retire, and 10% expect to be at least 85-years-old when they retire.
- 31% of respondents believe they will need to work past the age of 65 because of low interest on savings, and 34% of respondents plan to work as long as possible because they enjoy their job.
- 23% of respondents believe that employees aged between 41 and 60 are most likely to experience workplace stress.
- 57% of respondents feel that health will be a key challenge facing employees who work past the age of 65, 48% cite energy levels, and 18% believe employee engagement will pose a challenge.
Paul Avis (pictured), marketing director at Canada Life Group Insurance, said: “Savers have suffered from paltry returns ever since interest rates fell to 0.5% eight years ago. This is having a direct impact on UK workers’ retirement plans, with many forced to work longer than they would have hoped to. As inflation continues to rise, eating into the purchasing power of UK savers, this problem will only become more pronounced. Insufficient pension savings are another key cause, with recent reforms prompting many to realise they will need to continue earning for longer to fund a decent retirement.
“However, it’s not all bad news; others are working longer because they have high job satisfaction, and an older workforce brings with it a range of skills and experience. It is true however, as UK employees clearly identify, that older [employees] are more likely to suffer from health problems.
“Organisations that want to support and maintain an older workforce should consider offering income protection and critical illness products that help staff financially in the event of ill health. These also come with a range of support services designed to improve [employees’] overall wellbeing and enable those with an illness [to] return to work whenever possible; a plus for both employers and employees.”