Nearly four in 10 workers aged between 50 and 64 years plan to continue working beyond the retirement age, new research has revealed.
A survey of 1,000 people aged between 50 and 64, carried out by the Chartered Institute of Personnel and Development (CIPD), found that 31% of respondents who planned to retire at age 65 would change their mind if their employer allowed them to work flexibly.
Currently, only 11% of the workforce work beyond state pension age, according to the CIPD.
Men are more likely to plan to work beyond 65 than women, while finances are said to be the main driver behind the decision. This may reflect current concerns about individual finances and the economic outlook.
Charles Cotton, CIPD reward adviser, said: “On one level the survey findings look very positive, in that they show a strong demand for working beyond retirement age that is as much down to financial as other reasons, such as individuals wanting to use their skills and experience.
“However, it is clear that government policy could do more to encourage more older workers to stay on by extending the right to request flexible working beyond parents and carers and making pension arrangements more flexible. If the government fails to do this, its target of having a million older people in work will become a mere aspiration,” he said.
- Most of those planning to continue working would like to carry on with their current employer, either full-time (39%) or part-time (22%). The remainder would either work for another employer or themselves.
- Exactly half of those planning to carry on working past 65 anticipate retiring between the ages of 67 and 70, though a further 35% are undecided when they would actually retire after 65.
- More than two-thirds say that they need to work beyond 65 for financial reasons. This compares with 52% who cite using skills and experience as a key driver for working, 38% who list social interaction, and 27% who cite self-esteem.
- 42% of men say that they definitely want to work beyond 65, compared with 34% of women.
- 68% of respondents say that finance is the main reason for working beyond 65. Other reasons include using skills and experience (52%), social interaction (38%), and self-esteem (27%).
- Of those who do not plan to carrying on working beyond 65, 52% intend to rely on the state to help fund their retirement.