More than a third of workers will continue in employment past the age of 65
Tom Newcombe, November 16, 2012
Over a third of UK workers are planning to take advantage of the abolition of the default retirement age and keep working past the age of 65, according to research by insurer Canada Life Group.
The online survey of over 1,600 UK employees found that as people plan to stay in work longer, employers will need to face the implications of an older workforce.
Men are more likely to continue working for longer, with 44% agreeing they would still be working past their 65th birthday, compared to 31% of women.
The survey found that people believe that an older workforce will create problems, particularly for younger employees. Nearly a third feel that having people remain in work past the age of 65 will make it harder for younger people to move up the career ladder, especially in light of the current unemployment figures.
The older generations, potentially as they intend to keep working, are most likely to feel this way, with 43% of those aged 51-60 forecasting a 'job-blocking' effect.
Paul Avis, sales and marketing director at Canada Life Group Insurance, said: "For older workers, health care provision and group protection products such as critical illness cover will become an increasingly attractive part of their employment package.
"If a substantial rise in the number of older workers should occur within the workplace, employers will find it hard to avoid providing these types of products, but may find it more expensive."
Avis added: "We would advise all employers to take into account the impact of the change to the average retirement age and review their benefit packages accordingly. By speaking to an adviser to ensure they are getting the most for their money, they won't be faced with an unexpected bill."