Around 37 per cent of employers are seeing staff retire later, but few plan to review their workforce, according to Canada Life.
According to a survey of 500 private sector employers and over 3,200 UK workers found that 37 per cent of businesses have staff delaying retirement compared to 5-10 years ago, while 21 per cent have seen retirees return to work.
The survey also revealed that most employers understand that people will need to work longer but only 18 per cent plan to review their workforce profile and 56 per cent remain unsure whether changes are necessary.
Meanwhile, only 55 per cent of businesses are actively building multigenerational teams, and just 38 per cent of workers describe their workplaces as such, even though 84 per cent of employers believe older workers bring different skills and 58 per cent value them in customer-facing roles.
Employees also value older colleagues, with 82 per cent of private sector workers appreciating their experience. Most older workers continuing to work later in life are motivated by factors beyond financial necessity, as only 25 per cent cite money as their reason. Instead, 42 per cent highlight mental and physical health benefits, while 33 per cent value the social aspect of being around people. Additionally, 77 per cent say feeling valued and appreciated motivates them, and 66 per cent feel their contribution to society is important.
Many workers plan to change how they work as they approach retirement: 41 per cent intend to gradually reduce hours, 38 per cent plan to switch to part-time, 36 per cent want less demanding roles, and 23 per cent wish to change roles because they enjoy social interaction.
Canada Life UK chief people officer Nick Harding says: “We are witnessing a profound shift in the UK workforce. As people live longer and work beyond the traditionally defined retirement age, we are seeing changes in attitudes, openness and motivations for work in later life, alongside the emergence of a growing ‘un-retiring’ population.
“Multigenerational workplaces hold immense potential for innovation and collaboration. Yet, many employers remain uncertain about how to adapt, with over half unsure whether they need to rethink their workforce strategies.
“By fostering open conversations, responding to the evolving needs of employees, and adapting roles to suit changing motivations, businesses can create inclusive, multigenerational teams that thrive. Embracing this shift isn’t only about meeting the needs of today’s workforce, it’s a vital step in building a stronger, more inclusive businesses in the future.”