Over 2.5 million people, or 37 per cent of those over 55 who aren’t retired, believe they will continue to work once they reach state pension age, according to new research from Canada Life.
The study revealed that the primary reason for working above the state pension age is financial concerns about funding retirement, with half of those who are 55+ inclined to do so believing their pension won’t be enough. One-fifth, or 18 per cent, say they have not made any preparations for retirement, and a quarter, or 23 per cent, are unsure how long their retirement resources will last.
Nearly half, or 46 per cent, of the millions of older people who anticipate working past the age at which they are eligible for a state pension, are concerned that delaying retirement may prevent them from fully embracing their senior years.
More than half, or 45 per cent, are concerned that continuing to work will cause their health to worsen, and more than a third, or 35 per cent, are concerned that continuing to work will make their health worse. Another 16 per cent are concerned about being treated differently at work because their supervisor or coworkers think they are older, and the same percentage are concerned about not having as much time to spend with their families.
Canada Life technical director Andrew Tully says: “As inflation soars at double-digit rates and the cost-of-living crisis continues to bite, we are seeing a growing number give retirement a second thought. Not only are people now looking to work beyond their state pension age, but in some cases, we are seeing a retirement boomerang, with people either considering or returning to the workforce from retirement due to growing financial pressures.
“Looking ahead, the older workforce is going to be critical to the recovery of the UK economy as it will help to alleviate severe labour shortages, however, it is also a warning sign that people’s finances are under significant strain. For anyone worried about how the extreme market volatility and cost-of-living crisis could impact their retirement savings, seeking the help of an adviser is a sensible step. Not only will they be able to discuss the options, but will help people plan the retirement they have worked long and hard for.”