A third of Generation Xers fear health and old age mean they will be able to work for as long as they need to fund their retirement needs, according to research from the International Longevity Centre for Standard Life, part of Phoenix Group.
The research found 57 per cent of Gen Xers – those born between 1965 and 1980 – want to save more for retirement but are struggling to do so, with 25 per cent planning to work part-time past the state pension age (SPA) to plug an expected income short-fall in retirement.
A further 17 per cent plan to work full-time but have serious concerns about whether they will be able to continue working later in life.
The research found 37 per cent of all Gen Xers plan to work later in life to boost their retirement income. For 25 per cent, this is their only plan. But 59 per cent are worried poor physical health will restrict their ability to work, while 31 per cent are concerned poor mental health will impact them. More than three in 10 – 31 per cent – fear age discrimination will restrict their ability to retain or find another job, while 19 per cent worry they will not have the right skills to adapt to the changing job market, with 17 per cent fearing the economic impact of the pandemic will make it harder to remain in work.
The research concludes these fears are well-founded, with 36 per cent of all Gen Xers, and 33 per cent of those whose only plan for retirement is to work longer, also having a health problem or a disability. 62 per cent of those who plan to work past the SPA to address an income shortfall in retirement are confident they’ll be able to do so – but 25 per cent of this group currently have a health problem or disability, and 7 per cent expect to provide care to an adult in the next five years.
Sophia Dimitriadis, research fellow at ILC and report author says: “With nearly 4 in 10 Gen Xers relying on working for longer to plug an income shortfall in retirement, it’s vital that we support them to do so. Providing more support to workers in poor health will likely make the biggest difference – followed by tackling age discrimination.
“Policy-makers need to make all jobs flexible by default so that employees can alter their work patterns to suit their needs (including health needs) and increase the awareness and use of Government Access to Work funds among workers with acquired disabilities.
“Government can also make it easier for employees to challenge age discrimination at work by allowing tribunals to consider cases of multiple types of discrimination. Finally, policy-makers need to offer workers aged 40+ targeted back-to-work support to ensure they aren’t left behind during the pandemic. This is especially important given that older unemployed workers are the most likely to leave the labour market for good.”