The research found that a significant proportion of over 55s plan to continue working in some capacity as they approach retirement, with a further 45% unsure or yet to make plans for later life, suggesting fewer people are choosing linear career paths and traditional approaches to “work followed by retirement”.
The number of over 65s choosing to continue to work has risen 26% to 1.1 million since the abolition of the default retirement age in October 2011, and despite the difficulties facing many ‘pretirees,' a growing number of older workers are taking the changes to legislation as an opportunity to continue working for their own wellbeing. The Centre for the Modern Family research found a significant gap between those who want to carry on working versus those who need to continue earning.
Over half (54%) of those who choose to stay in employment said that they don’t feel ‘old’ enough to retire, and 24% want to keep working because they enjoy their job and want to continue their professional development. The study highlighted that one in five men (17%) and one in 10 women felt improvements in family relationships as a result of spending more time independently.
The changing shape of the family unit has also impacted the possibility of retirement for many over 55s, with ageing relatives and boomerang children adding financial pressure at both ends of the spectrum. Almost a fifth admitted that they will continue to work in order to support their family financially, yet 17% felt their ability to do their job is impacted because they are tired and stressed from balancing work and family life.
Almost half (44%) of over 55s who plan to continue working also said they will need to do so in order to supplement their pension, and a further 13% still have debt or a mortgage to pay off. More than half (54%) of over 55s admitted that they are already struggling to make ends meet and have had to adjust their spending habits before considering life on a pension. Almost a quarter (23%) say they have spent their savings or contribute less to savings now (24%) as a result of living costs in the last year, while a third (33%) have cut down on leisure spending.
Jackie Leiper, Director of Employer Relationships, Lloyds Banking Group, said:
“As the face of Britain’s workforce continues to evolve, we need to step back and ask ourselves if we are truly embracing this change and meeting the changing needs of a generation of people who are continuing to work beyond the age of 65 whether out of desire or necessity. A more diverse and flexible workforce brings significant potential for us to increase our productivity and competitiveness as a nation. However, we will only make it a success if we fully support employees finding the right balance between work and family commitments later on in their working lives.”
