The number of UK employees who expect to work past the age of 70 has nearly doubled in seven years, with younger members of staff most likely to anticipate working well into their seventh decade, according to research from Willis Towers Watson’s defined contribution pension scheme master trust LifeSight
The actuarial and global advisory firm’s retirement expectations survey found the proportion expecting to retire in their 70s has risen from 17% in 2010 to 32% in 2017.
Of those employees surveyed under the age of 30, 44% expect to retire in their 70s, compared to 20% of those in their 50s and over and 29% of those in their 40s. Many (70%) also think that their generation is likely to be much worse off in retirement than their parents’ generation.
Willis Towers Watson says the impact of this ageing workforce on other aspects of employees’ lives is considerable. Of those who expect to retire at 70 or over, 29% are highly stressed and 34% are in poor health, compared to 10% and 18% respectively of those who expect to retire before they are 65.
David Bird, head of proposition development at LifeSight said: ‘The fact that people are retiring later is not bad news in itself, as many studies have revealed numerous benefits associated with working longer.
‘But, it’s worrying that many who are expecting to retire later are not doing so out of choice and are therefore more stressed and less engaged with their job. This is not just problematic for individuals, but also for businesses. Employers need to harness their experienced talent in the right way to create a productive and happy workforce.’
The report found that overall 44% of those surveyed, plan to retire from their main job, but keep working for some time before they fully retire. Again, this was most prevalent amongst younger employees, with 49% of those under the age of 40 agreeing to that, indicating the potential increased prominence of the issue in the future.
Bird said: ‘Businesses need to think about whether their benefit programmes are fit to support an older workforce and provide a productive transition into retirement. Creating an environment where workers feel comfortable discussing their needs and options as they near retirement age, such as flexible working arrangements and upskilling, is important.
‘In addition, giving employees access to the tools that enable them to effectively plan for their retirement is also key. This will not only help ensure that people can retire when they want, but that they are productive employees for as long as they choose to be part of the workforce.’
Retirement expectations: 2017/2018 Global Benefits Attitudes Survey is here.
Report by Pat Sweet
