Almost a third (32%) of respondents believe they will not have a sufficient pension pot to fund their retirement by the age of 65, according to research by Canada Life Group Insurance.
Its research, which surveyed more than 850 employees, found that 14% intend to continue working past the traditional retirement age because they have not prepared for retirement and they do not know how long their money will last.
The research also found that 61% of respondents believe they will work past the age of 65, a drop from 66% in 2014.
However, it is still significantly higher than the 35% that believed they would work past the traditional retirement age in October 2012.
Younger employees, impacted by the rising state pension age, are most likely to work past 65. More than two-thirds (69%) of respondents aged between 21 and 30 believe they will work after 65, compared to 50% of those aged 50 to 60.
The research also found that almost nine in ten (88%) of respondents cited money worries as the reason that they are likely to work past 65, while 14% believe they cannot rely on the state pension.
A further 13% of respondents have saved for retirement but fear the cost of living is so high they will still need a wage past the age of 65.
And 4% intend to continue working past 65 to continue receiving employee benefits.
Only 12% of respondents said they would not work past the age of 65 under any circumstances.
The research also found:
- 47% of respondents are either certain or more likely to work beyond 65 due to the financial crisis.
- 6% of respondents have reviewed their retirement savings.
- 14% or respondents have reviewed their finances since the pension changes and found they will have to work longer.
Paul Avis, marketing director at Canada Life Group, said: “Retiring at the age of 65 is no longer a given, with a majority of employees expecting to work beyond this point be it for financial reasons or enjoyment.
“The recent recession has no doubt taken a toll as employees accept that their current savings and pensions are unlikely to cover the cost of retirement but improvements in health also mean that people are able to work longer.
“The younger generation have been particularly hard hit by the recession and, wise to the fact that they will enjoy a less generous pension scheme and have a longer life expectancy than their parents or grandparents, are therefore realistic to the fact they will be working beyond the age of 65.
“As such, it is imperative that employers adapt accordingly to offer appropriate benefits and flexibilities to support their entire workforce.
“Especially in light of the fact that an ageing workforce is likely to suffer from a greater number of health issues. Critical illness cover or income protection can offer invaluable support in the event of an accident or illness and is something greater numbers of employees and employers need to be aware of.”
