More People believe they will Work Past 65
It has been revealed that 61% UK employees expect to work past the traditional retirement age, with over 20% saying that they are certain they will stay in work as their get older.
Although the number is down from last year (where 66% expected to work past the retirement age as opposed to the current 61%) it still remains much higher than the 35% who assumed they would work past retirement age in 2012, the year after compulsory retirement was moved. Only 12% said they would not work past 65.
Retiring at 65 is no longer a given, the majority of employees are not expected to work beyond this whether it be for financial reasons or enjoyment.
Those aged between 21 and 30 (69%) were more negative in their reasons and chances of working past 65 than those aged 50 to 60 (50%). 88% said money worries were the main reason for needing to work beyond 65, with 32% thinking their pension pot would not be sufficient enough to support them through retirement. 14% thought that the state pension would not be adequate to live off.
It is likely that the recent recession has taken a toll as employees accept that their current savings and pensions are unlikely to cover the cost of retirement. The younger generation (under 30’s) would have been hit particularly hard by the recession as it has reduced the benefits they receive later on in life in most cases. Pension schemes are less generous and life expectancies are increasing so realistically they will have to work past the age of 65 in order to survive financially. Therefore, it is imperative that employers adapt accordingly and offer appropriate benefits and flexibilities to support their entire workforce – especially as an ageing workforce is likely to suffer from a greater number of health issues.
Source: HR Grapevine