Two out of three workers expect to work past their 65th birthday, according to new research.
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The number has doubled in only 18 months, as only 35% of workers believed they would work past the traditional retirement age, said the study from Canada Life.
Researchers were told 24% of workers feel they have no choice to carry on working into retirement as they do not have enough cash to give up their jobs.
Around a third were thinking about working on past the age of 65, but now believe they have no option due to a lack of savings.
For many, a combination of recession and pay rises failing to keep up with the cost of living mean their savings are diminishing rather than growing as they have to dip into supplement their living costs.
Million over 65s still working
With more than a million over 65s already staying in the workplace, 65% confessed they would have to stay in work because they needed the money, even though only 28% wanted to work on because they enjoyed their jobs.
While 63% feel they can save enough money to retire at 65 years old, 10% want to work on to keep benefits that come with their salary.
The benefits older workers believe are valuable to them are:
- Critical illness insurance (18%)
- Income protection (16%)
Change at the workplace is a concern for 20% who consider it may affect their health, although 1 in four believe they will have to retrain.
Out-dated concept
Around 40% of older workers understand that if they refuse to retire, they may block the promotion path of younger workers.
Paul Avis, marketing director of Canada Life Group, said: “Giving up work at 65 years old is fast becoming g an out-dated concept because an increasing number of workers have no financial option other than to stay in their jobs.
“Many do not have enough money to give up work completely or have not saved enough to finance more years in retirement due to increased longevity or the rising cost of living.
“Firms and workers should appreciate the value of workplace benefits and how they can help employers look after their older employees who will inevitably suffer from more health issues than their younger colleagues.”
Avis also explained that insuring against loss of income and serious illness will help older workers who may have to push back their retirement even further because of the loss of expected income.
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