16 May 2017
The number of UK people who plan to work beyond 65 has hit an all-time high.
New research from Canada Life Group Insurance found that 73% of employees expect to work beyond the traditional retirement age, up from 67% in last year and 61% in 2015.
Younger workers are particularly likely to work past 65, rising to more than four in five of 25-34s.
More than a third of those who intend to work beyond 65 say they could be older than 70 before they eventually retire.
Ten per cent expect to be at least the age of 85 when they retire, if they can retire at all.
Canada Life says eight years of rock bottom interest rates have taken a toll on UK employees’ savings.
Almost a third of UK workers, or 10million people, say they will work past 65 because of low interest on savings. This is up from 23% in 2016.
Poor pension planning is another reason UK employees expect to have to work past 65.
More than a third say their pension will not be sufficient so they will need to continue earning a wage.
However, not all reasons for delaying retirement are negative - 34% enjoy their job and would like to work for as long as possible.
When asked about the biggest challenges facing those working beyond 65, UK workers believe health (57%) and energy levels (48%) to be the biggest issues.
Other challenges include keeping up with new technology (21%) and coping with the daily commute (19%).
Paul Avis, marketing director of Canada Life Group Insurance, said: “Savers have suffered from paltry returns ever since interest rates fell to 0.5% eight years ago.
This is having a direct impact on UK workers’ retirement plans, with many forced to work longer than they would have hoped to.
"As inflation continues to rise, eating into the purchasing power of UK savings, this problem will only become more pronounced. Insufficient pension savings are another key cause, with recent reforms prompting many to realise they will need to continue earning for longer to fund a decent retirement.
“However, it’s not all bad news - others are working longer because they have high job satisfaction, and an older workforce brings with it a range of skills and experience."
Retirement may seem a long way off, but are you saving enough now for a comfortable retirement in the future?
With the state pension and some private pensions falling short in terms of what they provide in retirement, can you rely on these alone to provide sufficient income?
It can be hard to plan for tomorrow when we’re busy living for today, but if you begin planning and saving now you’ll have more options in the future.
Our independent financial advisers can help you devise the correct investment and saving strategy to allow you to enjoy the lifestyle you want when you retire.