- Over 2.5 million over 55s think they will work beyond their state pension age
- Half of over 55s don’t think their pension will be sufficient to fund their retirement
- Nearly a quarter (23%) are not sure how long their retirement savings will last
As the cost-of-living crisis continues to squeeze household income, new research from Canada Life1 reveals that over a third (37%) of over 55s that are not retired think they will work beyond their state pension age, the equivalent to over 2.5 million people.
Drivers for working beyond state pension age
Financial concerns around funding retirement is the key driver for working beyond state pension age, with half of those who are 55+ likely to work beyond thinking their pension will not be sufficient. A quarter (23%) are not sure how long their retirement savings will last, and nearly a fifth (18%) say they have not prepared for retirement.
Older workers’ concerns
Of the millions of older workers who expect to be working beyond their state pension age, nearly half (46%) are worried that working later will mean they can’t enjoy their older age. However, health is another key concern. Nearly half (45%) are worried their health will deteriorate because they need to keep working, while more than a third (35%) are worried their health will inhibit their ability to work. A further 16% are worried about being treated differently at work because their boss or colleagues perceive them as old, and the same amount are worried about not being able to spend as much time with their family.
Andrew Tully, Technical Director, Canada Life, comments:
“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.”
ENDS
Notes to editors
- Source: Survey conducted by Opinium among 2000 UK adults between 21 - 25 October 2022.
Enquiries:
Press enquiries should be directed to:
Amelia Graham, Vested, 07393 477057, canadalife@fullyvested.com
Paul Keeble, Canada Life, 07833 085387, Paul.Keeble@canadalife.co.uk
About Canada Life:
Canada Life is part of a group of companies controlled by Great-West Lifeco Inc., a diversified financial services holding company headquartered in Winnipeg, Canada. Through its subsidiary companies, Lifeco has operations in Canada, the United States, and Europe. Great-West Lifeco and its insurance subsidiaries have received strong ratings from major rating agencies. Great-West Lifeco has over 30 million customers worldwide and £1.341 trillion assets under administration (as at 31.12.21).
Canada Life Limited began operations in the United Kingdom in 1903 and looks after the retirement, investment and protection needs of individuals and companies alike. As well as providing stability and security through its individual contracts, Canada Life Limited has grown to become the leading provider of competitively priced group insurance solutions.
Canada Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England and Wales no. 973271. Registered office: Canada Life Place, Potters Bar, Hertfordshire EN6 5BA. Canada Life Platform Limited, trading as Canada Life, is a subsidiary of The Canada Life Group (UK) Limited, and is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales no. 8395855. Registered office: Canada Life Place, Potters Bar, Hertfordshire EN6 5BA.