New research from Canada Life reveals that half (49%) of Britons who are not already retired plan to work beyond the age they will receive their state pension - equivalent to 19.2 million. Of those who are planning to work beyond state pension age, the average individual expects to work until they are 72, up from the estimated 70 years old in 2022 when Canada Life last conducted similar research.
Why are people considering working beyond state pension age?
Finances are the top reason for working beyond state pension age. More than a third (36%) will continue working because they don’t think their pension will cover their day-to-day expenses. Of this same group, more than half (52%) are aged 55 or over.
Almost a third (30%) are worried about the cost-of-living crisis. Similarly, 29% are not sure how long their money will last.
However, money is not all that is keeping UK workers in the workplace beyond state pension age. Nearly a quarter (23%), will do so because they enjoy the routine of work, a fifth (20%) like their job, and 18% have not prepared for retirement.
For those who are thinking about working beyond state pension age, half (51%) plan to stay within the same or similar roles.
Key concerns working beyond retirement age
For those who plan to work beyond state pension age, 34% are concerned they will not be able to enjoy their old age as a result. A third (33%) are worried about their health deteriorating because of working longer, and a quarter (24%) about not being able to spend quality time with family. With AI and technology becoming more integrated within the workplace, 18% are concerned that they will not be able to keep up with new technological changes.
Dan Crook, Protection Sales Director, Canada Life, comments: “It’s clear the cost-of-living crisis is making people re-evaluate their plans with many of those who are approaching retirement now facing the possibility of working beyond their state pension age. For those who have to work in order to make ends meet, it’s understandable that this prospect may not be welcome.
“However, the positives that work offers should not be ignored, for both the employee and the employer. Older workers are a huge asset to the workplace, bringing years of experience as well as a wealth of resilience and insight that can benefit both younger workers and the company they work for.
“Regardless of the reason for people continuing to work beyond the state pension age, employers have a duty of care to ensure they support an inclusive culture and understand the changing needs of older colleagues.”
Benefits and perks beyond state pension age
Benefits and perks are a key consideration for all employees and can be significant enough to motivate individuals to accept a job. A third (34%) of all British workers have been swayed to take a job because of a competitive benefit package or company policy.
When asked what employers could offer that would be of most use to those working past state pension age, 45% said income protection. This was followed closely by critical illness cover (39%) and life insurance (38%). A quarter (24%) think access to a rehabilitation service which helps you get back into work after a serious illness would be the most useful.
Dan Crook continues: “Employers should foster a culture where their older workforce feels able and comfortable to continue their working lives. This comes through understanding the individual needs of their workforce, which change depending on which stage of life they are at. Offering relevant benefits such as group life, group income protection and group critical illness cover (solutions that normally come with additional support services) is a simple yet effective way to support employees.”
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