More than a third (37%) of respondents believe they will have to work past the accepted retirement age of 65, according to research by the Chartered Institute of Personnel and Development (CIPD).
Its Employee outlook: employee attitudes to pay and pensions report, which surveyed 1,656 employees, also found that 49% of respondents aged 55 or over predict they will work past 65 years of age.
The most common reasons for doing so are to keep mentally fit, as cited by 32%, and the desire to earn enough money to continue to enjoy themselves, for example by going on holiday (27%).
The research also found:
- Just a quarter (25%) of respondents believe that their employer is prepared to meet the needs of employees aged 65 and over.
- 55% of respondents believe they will get a pay rise in the next 12 months, compared to 66% who said the same last year.
- 31% of respondents do not expect any salary growth in 2017.
- 26% of respondents aged 55 or over do not know that the state pension age will increase from 65 to 66 between 2018 and 2020; and 48% of respondents aged between 35 and 54 are unaware that the state pension age is set to increase from 66 to 67 between 2026 and 2028.
- 36% of respondents do not know that they need to have paid national insurance contributions for 10 years to get the minimum state pension; and 32% are unaware that they must have paid national insurance contributions for 35 years to get the full state pension.
Charles Cotton (pictured), pay and reward adviser at the CIPD, said: “It’s shocking that, despite a large proportion of UK [employees] planning to work past the age of 65, employers are so underprepared to meet the needs of a maturing workforce. Older [employees] offer vast experience and knowledge, and can also act as mentors to young people in the workplace. To reap those opportunities, employers need to start reviewing and adapting their people practices, as well as the design of the organisation, jobs and work to ensure that they are fit for the new purpose.
“It is very positive to see that employees are recognising that remaining at work can help their wellbeing by helping them to keep mentally fit. In return, organisations have a duty to build workplaces that enable talented older [employees] to continue to work without facing organisational barriers.
“It’s clear that many people aren’t fully aware of what kind of pension they might receive or when, especially if the state pension is going to form a significant part of their retirement income. If they find out too late what they are entitled to, then they may be forced to remain at work out of necessity rather than choice.
“Employers will need to look at how to meet the needs of this group and HR has an important role in communicating to the employees about changes to the state pension. It is only fair that the state plays its part as well in telling [employees] what they can reasonably expect to receive.”
