Canada Life launches major new study highlighting the pressing need for UK workplaces to be longevity ready
- Fresh insights show that more than four fifths (83%) of employers agree longer working lives are inevitable as life expectancy rises
- Half of UK employers (50%) believe the shape of work will need to change in the future, but only one in eight (12%) employers have a longevity strategy in place
- Over two thirds (68%) of employers recognise that they have an increasingly important role in providing services and benefits that help enable people to stay in work for longer
- But three-quarters (73%) of UK employers also believe the government will need to take a more active role in helping people work for longer too
Canada Life, one of the UK’s leading retirement, insurance and wealth providers, has published a comprehensive new study, Building longevity-ready workplaces in the UK, highlighting the need for the UK’s workplaces to adapt to longer working lives.
Canada Life surveyed 600 employers and more than 3,200 members of the UK public for this second report in its multi-year Life100+ research programme. It reveals the challenges and impact that increased longevity will have on the world of work, and explores what government, businesses and individuals can do to adapt to longer working lives and harness the value that different generations bring to the workplace.1
Across the world, we are all, on average, living longer. By 2030, more than half of the UK workforce will be aged 50 or older, contributing an estimated £730 billion to the economy.2 Against this backdrop of increasing longevity, the study’s findings reveal that almost one in three (30%) UK employers recognise that an ageing workforce is a risk to their business over the next five years.
Four-fifths (83%) of UK employers believe people will need to work longer to support themselves in later life. However, most UK businesses are not yet acting to capitalise on the experience and skills that older employees bring, with only one in eight (12%) private sector employers future-proofing their businesses by having a strategy in place to recruit and retain older workers.
However, whilst holistic longevity strategies may not yet be widespread, many employers have at least one supportive measure in place, such as promoting a good work life balance (41%), valuing skills and expertise alongside formal qualifications (29%) and supporting flexible working for those with caring responsibilities (25%).
Lindsey Rix-Broom, Incoming CEO Europe, Great-West Lifeco and CEO Canada Life UK, says on the report:
“The longevity megatrend is shaping lives across the UK and beyond, transforming the makeup of our population and the way we live and work. The implications are clear: workplaces must adapt, but this isn't something that businesses can solve alone. It demands collective solutions that harness the potential of people of all ages.”
We have a collective responsibility to become ‘longevity ready’
Employers acknowledge that they have an important role to play in helping employees and workplaces adapt to longevity. This includes investing in skills development throughout employees’ lives (72%), being mindful of how motivations shift with age (70%) and by thinking differently about workplace structures (65%). However, employers also feel that preparing for longevity is a collective responsibility, with three-quarters (73%) believing the government will need to take a more active role in helping people work for longer.
The research also highlights a disconnect between employers’ views on working in later life and those of the working population, suggesting that there’s scope for employers to better understand the needs of their workforce at different stages of their career journeys. For example, more than half (55%) of employers believe employees who leave the workforce early do so because they physically can’t do the work, whereas only 18% of employees cite this as their motivation.
The changing structure of working life
The changing shape of UK age demographics may not lead to us simply working for longer, although almost four fifths of UK adults (79%) believe this will be the case. Rather, increasing longevity is necessitating a shift in the traditional structures of lives and work, requiring us to adapt beyond the accepted model of learn, work and retire towards something more agile.
Whilst most employers (83%) believe people will need to work longer, many also recognise that wider change is needed - 65% say we must rethink how our lives are structured, and 50% say the shape of work must change too, for example, skills development, work motivations, benefits and work structure. Four in 10 (42%) UK adults agreed it was likely that they would need to rethink their retirement plans by retraining or pursuing multiple careers, should living longer become the norm.
Lindsey Rix-Broom continues:
“The traditional three-phase model of education, work and retirement is quickly becoming outdated. In its place, we must create working environments that better reflect the complexity and fluidity of modern lives. This starts by better understanding the changing motivations, priorities and concerns of the UK population at different life stages, and by supporting businesses to address the challenges and capitalise on the opportunities that this brings.”
Health and working in later life
The prospect of living longer and working in later life inevitably raises legitimate concerns regarding health and wellbeing. However, it is clear that the UK public sees work as an important component of staying healthy, fulfilled and connected to others. Only one in four (25%) of individuals aged 65 or over who are still working do so because it’s a financial necessity versus approximately four in ten (42%) who are motivated to stay mentally and physically active.
Nonetheless, there is a need for employees to continue to take charge of their own health and lifestyle throughout working life. Concerningly, over half (58%) of those aged 45-54 and two thirds (66%) of those aged 55-64 don't hold employer-provided insurance products despite employees ranking health insurance (67%), income protection (63%) and life insurance (55%) as the three highest valued benefits behind salary, annual leave, pension contributions and flexible working.3
Businesses also have a critical role to play in supporting the physical and mental wellbeing of their employees. However, only four in ten (38%) employers regard employee health and wellbeing as a high priority, and businesses do not typically recognise the increasing value that employees place in benefits such as critical illness cover and income protection as they move through their working lives. Positively, however, over two thirds (68%) of employers recognise that they have an increasingly important role in providing services and benefits that help enable people to stay in work for longer.
Lindsey Rix-Broom continues:
“It is clear from our research that building longevity-ready workplaces requires collaboration and meaningful dialogue between individuals, employers, advisers and policymakers. Getting this right is not only a practical necessity – it is a moral imperative and a pathway to unlocking the growth and potential of the UK’s workforce and, by extension, the wider economy.”
“Building longevity-ready workplaces in the UK” is CPD accredited, and is available to download now from the following link: https://www.canadalife.co.uk/life100-hub/
ENDS
Notes to editors:
- The research for “Building longevity-ready workplaces in the UK” was conducted by @the Big Window Consulting. Findings are based on a representative sample of 3,200 adults across the UK (quantitative survey conducted February 2025) and with 600 employers of varying sizes (March 2025). Where necessary to yield useful insights, we look at differences by employer size: micro (1 to 9), small (10 to 49), medium (50 to 249) and large (250 plus)
- Generation Experience, The UK's Economic Superpower", Saga, 2023
- Employees were asked to rank the importance of benefits in employee packages: Base salary came out on top (80% selected this), followed by number of days annual leave (77%), employer pension contributions (74%) and flexible working (73%)
Press enquiries:
Julie Hughes-Edwards, Canada Life, 07803 249343, julie.hughes-edwards@canadalife.co.uk
Elle McAtamney, Canada Life, 07913 568213, elle.mcatamney@canadalife.co.uk
About Canada Life:
Canada Life is part of a group of companies controlled by Great-West Lifeco Inc., a Canadian headquartered, international financial services holding company with interests in life insurance, health insurance, retirement and investment services, asset management and reinsurance businesses. Through its subsidiary companies, Great-West Lifeco operates in Canada, the United States, and Europe. Great-West Lifeco trades on the Toronto Stock Exchange under the ticker symbol GWO and is a member of the Power Corporation group of companies.
Canada Life Limited began operations in the United Kingdom (UK) in 1903 and provides UK individuals and businesses with a range of retirement, investment, insurance and wealth solutions. Canada Life offers individual annuities, pension de-risking solutions, home finance, estate planning and investment options, and workplace protection products.
Canada Life Limited (no.973271) is registered in England and Wales, authorised by the Prudential Regulation Authority, and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Stonehaven UK Limited (no.05487702), trading as Canada Life, is registered in England and Wales and is authorised and regulated by the Financial Conduct Authority. Canada Life International Limited (no.033178C) and CLI Institutional Limited (no.108017C) are Isle of Man registered companies authorised and regulated by the Isle of Man Financial Services Authority. Canada Life International Assurance (Ireland) DAC (no. 440141) and Canada Life International Assurance (Ireland) DAC are authorised and regulated by the Central Bank of Ireland.
Canada Life Asset Management is the brand for investment management activities undertaken by Canada Life Asset Management Limited (no.3846821), Canada Life Limited and Canada Life European Real Estate Limited (no.03846823). Canada Life Asset Management Limited is authorised and regulated by the Financial Conduct Authority.
Please note that while Canada Life Limited and Canada Life Asset Management Limited are regulated as stated above, property management and the provision of commercial mortgages are not regulated activities.
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