36% will work past state pension age to cover daily expenses

pension work expenses

More than a third (36%) of British employees will continue working past state pension age because they do not think their pension will cover their day-to-day expenses, according to research by Canada Life.

The retirement, investment and protection provider, which surveyed 2,000 UK adults, found that 52% of respondents who said this would be the case are aged 55 or over. Half (49%) of those who are not already retired plan to work beyond the age they will receive their state pension, the equivalent to 19.2 million employees.

Of those workers, the average individual expects to work until they are 72, up from an estimated 70 years old in 2022.

One-third (33%) are worried about their health deteriorating due to working longer, and 18% are concerned they will not be able to keep up with new technological changes and have not prepared for retirement. Just under a third (30%) were worried about the cost-of-living crisis and 29% were not sure how long their money will last.

Meanwhile, 34% have been swayed to take a job because of a competitive benefits package. When asked what employers could offer that would be of most use to those working past state pension age, 45% said income protection, followed by critical illness cover (39%), life insurance (38%) and a rehabilitation service that helps an employee get back into work after a serious illness (24%).

Dan Crook, protection sales director at Canada Life, said: “Regardless of the reason for people continuing to work beyond the state pension age, employers have a duty of care to ensure they support an inclusive culture and understand the changing needs of older colleagues.

“Employers should foster a culture where their older workforce feels able and comfortable to continue their working lives. This comes through understanding the individual needs of their workforce, which change depending on which stage of life they are at. Offering relevant benefits such as group life, group income protection and group critical illness cover is a simple yet effective way to support employees.”