The proportion of older workers planning to work beyond the state pension age has increased dramatically in the last two years, suggesting that the recession has shrunk pension pots, savings, investments and house values. This is the main finding from a survey by the Chartered Institute of Personnel and Development (CIPD).
The Employee Outlook Survey of 2,000 working people shows the proportion of people aged 55 and above planning to work beyond the state pension age has jumped to 71%, compared to 40% in a CIPD survey two years ago. Financial factors are the main reason employees of all ages plan to work longer, with 71% of those aged 55 and over saying this is the case.
The research also shows that the older people get, the more likely they are to be planning to work beyond state retirement age, suggesting that reality bites as they get closer to drawing their pension. Just 30% of people aged between 18 to 24 plan to work beyond the state retirement age, however 52% of this age group said they did not know and 18% said no. The survey revealed the following:
- Under half of employees (46%) said they had a pension with their current employer, with men (52%) more likely than women (39%) to say this is the case.
- Worryingly just 23% of people aged 18 to 24 have a pension provision with their current employer.
There is a stark split between those working in the public, non profit and private sectors. 90% of public sector workers have a pension with their current employer, compared to 53% of workers in the non-profit sector and just 36% in the private sector.