Nearly two-thirds of employees expect to work beyond the age of 65, according to a survey by Canada Life Group Insurance.
61% of employees now expect to work past the traditional retirement age. This is lower than the 66% reported in 2014 which may be indicative of a wider increase in financial optimism; however it is still a far higher percentage than the 35% reported in 2012, the first year after the removal of compulsory retirement.
22% of respondents said that they would “definitely” continue to work as they got older whilst only 12% said that they would definitely not work past age 65. This drastic shift in expectations indicates that working beyond retirement age is becoming the norm.
88% said that money would be the main reason for working beyond 65, with 14% saying that they do not believe that they would be able to rely on a state pension. A third of respondents (32%) stated that their pension savings will not be enough to fund their retirement. Age plays a significant factor in the findings as 69% of workers aged 21 to 30 believed they would have to work beyond retirement age, as opposed to just 50% of those aged between 50 and 60.
Paul Avis, Marketing Director of Canada Life Group Insurance, said that “retiring at age 65 is no longer a given.”
“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. The younger generation have been particularly hard hit by the recession, and [are] wise to the fact that they will enjoy a less generous pension scheme and have a longer life expectancy than their parents or grandparents.”
“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.”
The implication for employees is to start saving as soon as possible for their future. Employers on the other hand will have to start adapting to and providing for a workforce that is going to continue getting older.