Photograph: Sean Smith/The Guardian
By Graham Snowdon
The economic crisis will lead to a surge in the proportion of people who intend to work beyond the state retirement age of 65, according to a report by the Chartered Institute of Personnel and Development (CIPD).
Some 71% of workers over 55 who replied to the Employee Outlook survey of 2,000 people said they planned to work beyond the state pension age, compared with 40% of respondents to a similar survey two years ago.
Financial issues are the main reason for the trend, with pension funds, savings, investments and house prices all being hit by the recession.
The findings have serious implications for employers, according to the CIPD's reward adviser, Charles Cotton. "With more people planning to work past 65, employers will have to accommodate older workers and motivate those who wish they could be elsewhere."
Workers over 55 were most likely to have accepted that they must work into old age, the survey found. By contrast 70% of 18-24-year-olds did not believe they would be working past 65, despite being the age group least likely to have a generous pension to fall back on.
Alarmingly, less than half of all employees (46%) said they had a pension with their current employer, with just 36% of private sector employees benefiting from an employer-organised retirement fund. "Employers need to review how they are helping their employees save for retirement to get value from their pension spend," Cotton said.
Tom McPhail, head of pensions research at financial adviser Hargreaves Lansdown, said: "The reality is that most people simply cannot afford to retire." He urged people to "save as much as you can, as soon as you can". [rc]
© Guardian News and Media Limited 2009
November 26, 2009
UK: Employees resigned to working beyond retirement age
.
LONDON, England / The Guardian / Money / Work & Career / November 26, 2009
Survey reveals 71% of employees plan to work past age of 65,
compared to just 40% two years ago
Photograph: Sean Smith/The Guardian
By Graham Snowdon
The economic crisis will lead to a surge in the proportion of people who intend to work beyond the state retirement age of 65, according to a report by the Chartered Institute of Personnel and Development (CIPD).
Some 71% of workers over 55 who replied to the Employee Outlook survey of 2,000 people said they planned to work beyond the state pension age, compared with 40% of respondents to a similar survey two years ago.
Financial issues are the main reason for the trend, with pension funds, savings, investments and house prices all being hit by the recession.
The findings have serious implications for employers, according to the CIPD's reward adviser, Charles Cotton. "With more people planning to work past 65, employers will have to accommodate older workers and motivate those who wish they could be elsewhere."
Workers over 55 were most likely to have accepted that they must work into old age, the survey found. By contrast 70% of 18-24-year-olds did not believe they would be working past 65, despite being the age group least likely to have a generous pension to fall back on.
Alarmingly, less than half of all employees (46%) said they had a pension with their current employer, with just 36% of private sector employees benefiting from an employer-organised retirement fund. "Employers need to review how they are helping their employees save for retirement to get value from their pension spend," Cotton said.
Tom McPhail, head of pensions research at financial adviser Hargreaves Lansdown, said: "The reality is that most people simply cannot afford to retire." He urged people to "save as much as you can, as soon as you can". [rc]
© Guardian News and Media Limited 2009
Photograph: Sean Smith/The Guardian
By Graham Snowdon
The economic crisis will lead to a surge in the proportion of people who intend to work beyond the state retirement age of 65, according to a report by the Chartered Institute of Personnel and Development (CIPD).
Some 71% of workers over 55 who replied to the Employee Outlook survey of 2,000 people said they planned to work beyond the state pension age, compared with 40% of respondents to a similar survey two years ago.
Financial issues are the main reason for the trend, with pension funds, savings, investments and house prices all being hit by the recession.
The findings have serious implications for employers, according to the CIPD's reward adviser, Charles Cotton. "With more people planning to work past 65, employers will have to accommodate older workers and motivate those who wish they could be elsewhere."
Workers over 55 were most likely to have accepted that they must work into old age, the survey found. By contrast 70% of 18-24-year-olds did not believe they would be working past 65, despite being the age group least likely to have a generous pension to fall back on.
Alarmingly, less than half of all employees (46%) said they had a pension with their current employer, with just 36% of private sector employees benefiting from an employer-organised retirement fund. "Employers need to review how they are helping their employees save for retirement to get value from their pension spend," Cotton said.
Tom McPhail, head of pensions research at financial adviser Hargreaves Lansdown, said: "The reality is that most people simply cannot afford to retire." He urged people to "save as much as you can, as soon as you can". [rc]
© Guardian News and Media Limited 2009
