Around 60% of UK adults expect to work to their planned retirement age in good health, while 29% say physical or mental health has already impacted their ability to work in the past five years.
This is according to the latest Scottish Widows Retirement Report which found that health conditions are increasingly affecting working lives and retirement readiness
The report shows clear knock-on effects, with 10% stopping work, 7% reducing hours and 6% moving into lower-paid or less demanding roles, all of which are feeding through into weaker retirement outcomes through reduced earnings and lower pension contributions that limit long-term financial security.
According to National Retirement Forecast (NRF) data, half of those with health conditions affecting daily life are projected to face pension poverty, compared with 27% of the wider population.
Additionally, later-life planning is also lagging,with 34% not considering care needs and 51% lacking confidence in affording care. Among those with health conditions, 67% lack that confidence.
Scottish Widows pension expert Susan Hope says: “Navigating health challenges is something which many of us will have to face in our later years. Whether it’s managing a chronic condition, mental burnout, or working through menopause, physical and emotional struggles often force people to change their working patterns, cut back their hours or drop out of the workforce altogether.
“This just doesn’t affect our day-to-day lives, it often knocks our long-term financial plans off track too. The good news is that you don’t need to completely overhaul your life today to make a meaningful difference for tomorrow. Small changes really do add up. Taking just ten minutes to check your pension balance, using an online calculator to see what you might need, or finding out if your employer matches extra contributions can give you more control.”