More plan to work past 65

There has been a steep rise in the number of older workers who plan to work beyond the state pension age, research by the Chartered Institute of Personnel and Development has revealed.

Their Employee Outlook survey of 2,000 working people found that the proportion of people aged 55 and above planning to work beyond the state pension age has rised to 71 per cent, compared with 40 per cent in a similar survey two years ago. Financial shortfalls are the main reason for the trend with pension pots, savings and investments, and house values all being hit by the recession.

An older workforce could be difficult for employers, especially in engaging a group who are only still working for financial reasons, said a CIPD, adviser.

“With more people planning to work past 65, employers will have to accommodate older workers and motivate those who wish they could be elsewhere,” he said, adding, “Employers need to review how they are helping their employees save for retirement to get value from their pension spend.”

Workers over 55 were most likely to have faced up to the reality of working into old age, the survey found. Only 30 per cent of 18-24 year olds thought they would be working past 65, even though they were least likely to have a generous pension to fall back on.

Under half of employees (46 per cent) said they had a pension with their current employer, a figure which falls to 36 per cent in the private sector.

Tags: Pensions, retirement, shortfall, work

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