New research from Canada Life Group has revealed that people are planning to take advantage of the opportunities offered by the end of the default retirement age, with over a third (35%) of employees believing they will work past the age of 65.
This will force employers to take the implications of having an older workforce into account in terms of the benefits they offer, with some benefits likely to become more expensive.
Lack of understanding
Despite the fact the change occurred a year ago, 48% of workers were not aware that the default retirement age had been scrapped. This suggests that while many people may wish to work longer, some may not be aware of the option and simply retire as they think they should.
Implications for rest of the workplace
Men in particular feel they are more likely to continue working for longer as a result of the removal of the default retirement age, with 44% agreeing they would still be working past their 65th birthday (women 31%).
However, some people believe that an older workforce will create problems, particularly for younger employees. Nearly a third (29%) 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.
Others expect that having older workers will change the working dynamic, with a fifth (20%) forecasting changes because older people may have more health issues. As a result, 27% of workers think that employers will be forced to hand out incentives in order to encourage people to retire, with nearly a third (31%) of 51-60 year olds believing this will be the case.
Paul Avis, Sales and Marketing Director at Canada Life Group Insurance comments; “It is evident that many UK workers intend to take advantage of recent changes to the default retirement age and work past the age of 65. Whether this will have a positive or negative effect on younger workers remains to be seen, but it is inevitable that having an older workforce will have implications on the kind of benefits that employers can provide.
“For older workers, healthcare 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.
“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 advisor to ensure they are getting the most for their money, they won’t be faced with an unexpected bill!”
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Campaigns & Issues
Pension Trends, Chapter 5: State Pensions, 2013 Edition
A larger proportion of men than of women receive the full Basic State Pension (BSP): in September 2012, 80% of male pensioners received full BSP compared with only 46% of female pensioners.
Surge in population
Britain's population could surge to 132 million over the next century thanks to growing life expectancy and high immigration, officials said this week.
People born in 25 years’ time are likely to live five years longer than those born today, according to the forecast by the Office for National Statistics.
The ONS said UK life expectancy for 2012 is 78.7 years for men and 82.4 for women – but in 25 years time this will have climbed to 84 for men and 87.3 for women.
Competitions & Fun
Win a copy of Michael Ball's new DVD - Both Sides Now Tour
Michael Ball’s first live DVD in 2 years - filmed live in concert at the Hammersmith Apollo
Includes Exclusive Bonus CD – 8-track CD Featuring hit songs from Les Miserables, Phantom of the Opera… plus all his latest hits.
Both Sides Now the album has sold over 100,000 copies since launch
Michael Ball is one the UK's most loved performers. From leading the cast of Les Misérable, to singing his heart out to adoring audiences around the world, fans can treasure their favourite singer live in concert.
Win one of 31 fabulous travel treats from Silver Travel Advisor this December
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Silver Travel Advisor is a friendly website packed with advice, tips, information and honest reviews written by and for silver travellers (aged over 50). A team of advisors are on hand to answer queries (for free), and you can share your own experiences too.
Health & Wellbeing
Tackling the challenges of dementia
The Economic and Social Research Council (ESRC) is pleased to announce that, along with the National Institute for Health Research (NIHR) it's awarding £20 million to six research projects which will significantly add to our understanding of dementia.
Amongst other things, the research will look at how we can better prevent dementia, and improve the quality of life of those with dementia and their carers.
Property & Finance
Retirement income needs to come from a variety of sources
After a year-long study into the consumer experience of buying an annuity, the Financial Services Consumer Panel concluded that the market does not work well for the majority of consumers and urged a review. Andy Zanelli, head of retirement planning, AXA Wealth, comments on the need to look at a variety of sources for securing income in retirement.
Leisure and Lifestyle
Robert Tanitch reviews Drawing the Line at Hampstead Theatre, London, NW3.
Pundit Nehru, Muhammad Jinnah, Mahatma Gandhi, Clement Atlee and Louis Mountbatten are the key players, but it is the lesser known Judge Cyril John Radcliffe who holds centre stage in Howard Brenton’s new and absorbing play about the partitioning of India in 1947.
India is a financial burden Britain can no longer afford. Prime Minister Atlee dispatches Radcliffe to divide the sub-continent into two new sovereign dominions. Five weeks to dismantle an empire clearly isn’t long enough. The haste is indecent. But that’s all Radcliffe has.
"I'm a pensioner, get me out of here!"
Today's pensioners may not have to endure daily Bush Tucker trials to top up their shopping baskets but for almost 70% of people surveyed by the deVere Group, cost of living is the primary concern about retiring in the UK.
According the results of a recent survey of 1,231 over 50's questioned by the international financial consultancy, cost of living is the primary motivation for quitting Britain with almost half (49.5%) stating that they have 'seriously considered', 'are thinking about', or 'would be tempted' to live overseas during retirement.
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