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Business performanceLatest NewsEconomics, government & businessLabour marketPay & benefits

Sharp rise in number of people who plan to work past retirement age

by Mike Berry 24 Nov 2009
by Mike Berry 24 Nov 2009

The proportion of older workers planning to work beyond the state pension age has increased dramatically in the past two years, research has revealed.

The Employee Outlook survey of 2,000 working people, conducted by the Chartered Institute of Personnel and Development (CIPD), shows the proportion of people aged 55 and above who plan to work beyond the state pension age has jumped to 71%, compared to 40% two years ago.

Financial factors are the main cause, cited by 71% of those aged 55 and over.

The research also shows that the older people get, the more likely they are to be planning to work beyond state retirement age, suggesting that reality bites as they get closer to drawing their pension.

Just 30% of people aged between 18 and 24 plan to work beyond the state retirement age, however 52% of this age group said they did not know and 18% said would not.

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Charles Cotton, CIPD reward adviser, said: “Employers need to review how they are helping their employees save for retirement to get value from their pension spend from 2012 onwards.

“With more people planning to work past 65, employers will have to accommodate older workers and motivate those who wish they could be elsewhere.”

Mike Berry

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