As the cost-of-living crisis continues to squeeze household income, new research from Canada Life has revealed that 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.
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. 23% are not sure how long their retirement savings will last, and 18% say they have not prepared for retirement.
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. 45% are worried their health will deteriorate because they need to keep working, while 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 at Canada Life, said: “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.”