The current rise in the number of over-50s in the workforce is expected to continue.
Currently almost a third (28% or 9.1 million) of the UK workforce (32.32 million) is over the age of 50 – an increase of 12% over the last five years.
While the end to the default retirement age has contributed to this increase, new research from Partnership suggests economic necessity will drive this trend going forward as 71% of 50-65 year olds feel that they will need to supplement their income in retirement.
Research from the specialist insurer revealed that while 33% of 50-65 year olds had put aside savings and investments to fill this gap, up to 39% will rely on continued paid employment of some sort. Indeed, 21% intend to delay their retirement and 18% will look to set up a small business or take on part-time work when they finish their current role.
Over-50s views of later life employment revealed that the majority (52%) believe that people should be able to work for as long as they are able and 48% felt that there should be more opportunities for part-time work in retirement. While 30% of over-50s believe work has social as well as financial benefits, some do not believe that they will ever be in a position to fully retire (16%) and 7% say they have no pension savings at all.
However, some over-50s felt that this may have a negative impact on the younger generation and 31% felt that over-65s should retire so younger people could be employed. Instead, 24% suggested that the Government should pay older people to undertake community service.
Andrew Megson, managing director of retirement, Partnership, said: “With almost three quarters of 50 – 65 year olds believing that they will need to supplement their pension income, it is vitally important that they make the most of the savings pot that they do have. Not only do people need to shop around to ascertain what deals are available but they also need to consider whether their health or lifestyle might have an impact on their annuity income.
“Over 3.7 million people are living with diabetes in the UK and just telling their annuity provider about this condition could get them up to 19% more annual retirement income. So while it is obviously vital to put away as much as possible over your working life, this is not always possible so you also need to make sure that when it comes to taking out an annuity, you find the best deal for you.”