Mortgages.scot

Canada Life is an insurance and financial services company, a very well-known organisation. Recently, they carried out some research into retirement, and the results were not very optimistic.

The research

According to their research, the suggestion is that half of all currently non-retired people in the UK plan to work beyond the state pension age. Three main reasons were cited;

1. Pension won't be enough to cover day-to-day living in retirement.
2. The cost of living crisis.
3. Not prepared enough for retirement.

Of all those surveyed, 36% indicated they would work longer, but for those above the age of 55, that increased to 52%. The current retirement age for men and women is 66, but the research suggests many will work until at least 72. When the same research was carried out in 2022, it was 70, an increase of 2 years.

Not preparing for retirement is a common issue. Although many have paid into a company scheme throughout the years, performance has taken a big hit recently, for many that may not fully recover in time for an earlier retirement. Not contributing more in later years is also a cause. Of course, many can't afford to pay more.

Not everyone surveyed is reliant solely on the state pension. But many still need it to boost any private pension they have.

Working longer raises concerns

For many that have already identified a need to work beyond state retirement age, they, of course, have concerns having to do this, which include;

1. Not being able to enjoy old age. 24% were anxious about not being able to spend quality time with family.
2. Deterioration of health as a result of having to work longer.

Both are real issues, especially considering that many employers are still reluctant to employ older workers. Ageism is as real as any other form of employment discrimination.

Employers should embrace older workers

Employers need to embrace older workers and appreciate they can bring as much, if not more, than those much younger employees. The knowledge and experience after decades of working is not something to be dismissed.