Around a third (32%) of respondents plan to work beyond the age of 65 because their pension savings will not be sufficient to allow them to cease earning a wage, according to research by Canada Life Group Insurance.
Its survey of 1,002 full and part-time employees also found that 25% believe they can no longer rely on a state pension or benefits, while 21% have saved for their retirement, but feel that high living costs mean they will still need a wage.
In comparison, 30% enjoy their jobs and would like to work for as long as possible and 21% enjoy the other benefits they get from work, such as social interactions.
Paul Avis (pictured), marketing director at Canada Life Group Insurance, said: “Employers would do well to take note of the growing number of [employees] planning to work beyond 65 not because of their finances, but because they find their jobs enjoyable and rewarding. These people can be a good influence on the rest of the workforce and employers should look at what cards they have up their sleeves to retain them.”
Of those considering working beyond age 65, 17% value having income protection, while 16% appreciate having access to life insurance. A further 13% of this group highly value critical illness cover and 10% appreciate being able to use an employee assistance programme (EAP).
Almost three-fifths (58%) cite slow wage growth as the reason they are likely to work past the age of 65. Other factors include the rising cost of everyday necessities (71%), rising inflation impacting the value of savings (63%), poor returns on savings (62%) and the economic uncertainty caused by Brexit (51%).
The research also found that 71% of employees think they will work beyond the age of 65; of those, 37% feel they will work until at least age 75.
Avis added: “It comes as little surprise that UK [employees] are expecting to work longer. The rising cost of living and poor returns on savings continue to exert pressure on employees’ finances. We found well over a third would consider themselves lucky to retire before 75, never mind the fact that over 70% expect to work beyond 65 for the third year in a row.
“Income protection and critical illness cover should be at the top of employers’ lists to appeal to an ageing workforce. They are increasingly popular with employees planning to work beyond 65, protecting as they do against ill health and conditions which become increasingly likely with age.
“With proper planning on employers’ parts, these benefits can be provided with no medical questions for the vast majority of their workforce. They also include a range of support services, such as employee assistance programmes and second medical opinion services, which can be used by employees of all ages, whether a claim is made or not.”