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Financial worries putting people off retiring
The study showed that one in ten Brits 'never want to retire', whilst one in eight believe they will be between 71 and 80 years of age before they eventually retire. In addition, 8% of young people aged between 18-24 years believe they will 'never' retire and nearly 20% of those aged over 65 have admitted being 'reluctant' to give up work.
David Parfett, senior corporate pensions consultant at Aon Employee Benefits, said this could cause problems within businesses. "An ageing workforce creates significant challenges for employers, especially around how to control the cost of benefit provision for this group of workers but also creates a block to opportunities for younger workers wishing to enter or progress in the workplace," he said.
The joint study carried out by Co-op Funeralcare and Co-op Legal Services - conducted as part of a series of studied released ahead of the Co-op's over 50s report - also found significant regional variations in attitudes:
- 14% of Londoners said they have no intention of retiring
- Older workers in the East of the UK could remain in work longer than those in other areas of the UK
- Just 4% per cent of Welsh respondents said they have no plans to retire, with the majority expecting to retire five years earlier than their East-based peers.
Financial concerns have been cited as the 'key reason' for delaying retirement according to Health Insurance Daily. In particular, 22% of the over 50s have had to keep working due to lack of savings, 11% weren't able to retire due to outstanding debts, 7% still had a mortgage to pay and 9% said they were unable to afford their utility bills without a steady income. 8% still had children to support.
The study revealed gender differences too: 1 in 10 women never intend to stop working compared to 1 in 15 men.
Parfett added: "A combination of higher life expectancy and inadequate savings inevitably will mean the only option is to work for longer and increasing state pension ages will add to this trend."
This article was provided by Aon Employee Benefits.
