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Pension-age workers set to double as millions delay retirement

11 November 2009 / by Rebecca Sargent

The number of people working beyond retirement age looks set to double over the next 10 years, research from Prudential has revealed.

The study of UK businesses found that nearly a quarter of companies expect staff to continue working beyond pension-age over the next decade. In fact, the proportion of the workforce that delays retirement is expected to more than double to 1.8million people.

This is the equivalent of 6.3 per cent of their workforce, up from the current average of 2.6 per cent that are working beyond retirement age.

Commenting, Martyn Bogira, Prudential's director of defined contribution solutions said: "As health and longevity continue to improve and people look to fund a longer life in retirement, it is inevitable that compromises have to be made."

The statutory retirement age for both men and women is set to increase to 68 by 2046, Mr Bogira adds: "So working longer will be a fact of life for those entering the workforce today but these findings suggest that increasing numbers of pensioners will be forced to work later far sooner than this.

"Employers have told us that their staff costs could rise as their employees work longer," he adds.

As a result, workers are faced with the prospect of delaying retirement or saving more for their pension. Mr Bogira comments: "Early pension saving is critical and we strongly encourage people not to delay starting a pension."

© Fair Investment Company Ltd