More than a third (37%) of working over-55 year olds expect to work beyond their state pension age as the cost-of-living crisis continues to squeeze household income, new research from Canada Life has revealed.
Concerns around funding retirement is the biggest driver for working beyond state pension age, with half of those aged 55 and over believing their pension will not be sufficient. A quarter (23%) are not sure how long their retirement savings will last and 18% say they are not prepared for retirement.
For those facing the prospect of working beyond their state pension age, the research showed 46% are worried that working for longer will mean they can’t enjoy their older age while 45% are worried working for more years will impact their health and 35% are concerned their health will inhibit their ability to work. A further 16% expressed concern about being treated differently at work because of their age.
Andrew Tully, technical director at Canada Life, said: “As inflation soars at double digit rates and the cost-of-living crisis continues to bite, we are seeing a growing number give retirement a second thought.
“Not only are people now looking to work beyond their state pension age, but in some cases, we are seeing a retirement boomerang, with people either considering or returning to the workforce from retirement due to growing financial pressures.
“Looking ahead, the older workforce is going to be critical to the recovery of the UK economy as it will help to alleviate severe labour shortages, however, it is also a warning sign that people’s finances are under significant strain. For anyone worried about how the extreme market volatility and cost-of-living crisis could impact their retirement savings, seeking the help of an adviser is a sensible step.”
