- Over a third of employers (37%) are seeing people working longer and retiring later
- Only 1 in 6 (18%) employers plan to review the profile of their workforce
- Even though most employers (84%) feel older workers bring a different skillset
- Canada Life has positive experience of creating a multigenerational workplace
New research from Canada Life reveals1 UK employees are actively working longer and retiring later, but most employers appear unsure how to adapt or make the most of this shift in working practices.
A sample of 500 private sector employers and over 3,200 members of the UK public were surveyed to understand how employers and employees are adapting to the prospect of people living and working longer, and the challenges and opportunities of building multigenerational teams.
The findings show that over a third (37%) of UK businesses are seeing employees working longer and retiring later compared with 5-10 years ago, while one in five (21%) have seen people who previously retired subsequently return to work.
Evidence suggests employers are a long way from knowing how to assess the impact this shift will have on their business or what action to take as a result. Though over four-fifths of employers (83%) are conscious of increasing longevity and believe people will need to work for longer, just one in six (18%) employers believe their business is going to have to think differently about the profile of their workforce. Moreover, over half (56%) said they are unsure whether they need to do so.
Canada Life’s research clearly shows that both employees and employers believe they benefit from multigenerational workplaces. Eight in ten (82%) of private sector employees value older workers for their experience, while an equally high number (84%) feel they bring a different skillset to other generations. Almost six in 10 employers (58%) felt older workers are especially valuable in customer-facing roles.
Despite this, only half (55%) of businesses are consciously building multigenerational teams. There is also a clear disconnect between employer intentions and employee perceptions - when asked, just 38% of the UK public described their workforces as multigenerational.
Canada Life makes a number of recommendations in its recent report, titled Building longevity-ready workplaces in the UK, for employers to consider when developing their own age-inclusive workplace strategy.
- Encourage regular, open and honest conversations between employees and managers to understand workers’ changing motivations, priorities, plans and concerns. They evolve at every stage of a person’s life and can change considerably as people age. This will help both sides understand how the workplace can support and adapt to changing circumstances or needs.
- Ask what makes employees feel valued – because research has revealed that money is not necessarily why people continue to work later in life. Only a quarter (25%) of people working in later life do it for financial necessity – the mental and physical health benefits (42%) and being around people (33%) matter more. Over three-quarters (77%) of people said they’re motivated by feeling valued, appreciated and by the positive relationships of teamwork, while two-thirds (66%) feel the contribution they make to society and the community matters.
- Consider whether roles could be adapted to suit different working patterns or motivations. When surveyed, people aged 65 and under said they intend to change the nature of their role as they retire:
- 41% intend to gradually reduce their hours
- 38% will switch to part-time
- 36% will move to a less demanding role, and
- 23% of people want to change the nature or type of their role because they like being around people.
Commenting on the findings, Nick Harding, Chief People Officer at Canada Life UK, said:
“We are witnessing a profound shift in the UK workforce. As people live longer and work beyond the traditionally defined retirement age, we are seeing changes in attitudes, openness and motivations for work in later life, alongside the emergence of a growing ‘un-retiring’ population.
“Multigenerational workplaces hold immense potential for innovation and collaboration. Yet, many employers remain uncertain about how to adapt, with over half unsure whether they need to rethink their workforce strategies.
“By fostering open conversations, responding to the evolving needs of employees, and adapting roles to suit changing motivations, businesses can create inclusive, multigenerational teams that thrive. Embracing this shift isn’t only about meeting the needs of today’s workforce, it’s a vital step in building a stronger, more inclusive businesses in the future.”
ADDRESSING SKILL SHORTAGES IN THE ISLE OF MAN: CANADA LIFE CASE STUDY
Canada Life is evolving its people strategy to strengthen its business and build an age-inclusive workforce that matches the customers it serves.
It was facing a pressing talent and skills shortage on the Isle of Man, where it has an office serving UK customers. The Isle of Man had almost three times as many vacancies as unemployed people3 and the over 50s made up almost half (45.4%) of its population4.
Canada Life’s regular recruitment practice of targeting school and university leavers, many of whom would subsequently leave the Isle of Man, was no longer sustainable.
Working with 55/Redefined, a company that supports businesses to become age-inclusive employers, research was commissioned among local residents to find out when they wanted to retire and what would keep them in the workforce. The insights fed into a targeted recruitment campaign to help Canada Life fill its local talent gap. 55/Redefined also worked with its people team to assess its recruitment and HR practices, and provided support to its line managers on how to lead and develop multigenerational teams.
The result is a location-specific talent strategy and the successful placement of candidates in Canada Life’s Isle of Man business, along with a detailed multi-year action plan of how to evolve its benefits, practice and culture to embrace people’s age experience and become a best-in-class inclusive employer.
Commenting on Canada Life’s own age-inclusive journey, Nick Harding continued:
“Embracing demographic shifts isn’t just about supporting our colleagues to navigate different life stages, it builds the underlying strength of our business as well. On the Isle of Man, where we faced a pressing talent and skills shortage, our pilot successfully tapped into the wealth of experience offered by the over-50s population.
“Multigenerational teams bring diverse perspectives that encourage collaboration and enhance customer experiences. Our Isle of Man pilot has not only filled roles but is also positively influencing our workplace culture.”
-ENDS-
Notes to Editors
Sources:
- 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 500 private sector employers of varying sizes (March 2025).
- Generation Experience, The UK's Economic Superpower", Saga, 2023
- Isle of Man Labour Market Report, April 2024, 918 vacancies vs 281 people registered unemployment
- Isle of Man Population Report 2023, updated 061123, p.4
Enquiries:
Press enquiries should be directed to:
Rebecca Gladstone, Canada Life, +44 7833 085387, rebecca.gladstone@canadalife.co.uk
Julie Hughes-Edwards, Canada Life, +44 7803 249343, julie.hughes-edwards@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.