Increase in working past retirement
Updated on 09 November 2009
The number of people working on past the state retirement age is set to more than double during the coming 10 years, research has claimed.
Businesses are bracing themselves for a surge in people delaying retirement, with an estimated 1.8 million people expected to continue in employment beyond the state pension age by 2019, according to insurer Prudential.
Around 753,000 are currently still in work despite being above the state pension age, which is 60 for women and 65 for men, although it is being increased to 65 for both sexes by 2020.
One in four of 500 finance directors questioned said they expected to see a rise in people working on past the retirement age during the coming 10 years, rising to 39% among larger firms.
Companies estimate that just over 6% of their workforce will be 65 or older by 2019, more than double the 2.6% of people who are currently still working despite being able to claim their state pension.
The research also found that 7% of finance directors had already seen an increase in the number of people who were working for longer.
Martyn Bogira, Prudential's director of defined contribution solutions, said: "As health and longevity continue to improve and people look to fund a longer life in retirement, it is inevitable that compromises have to be made.
"The statutory retirement age for men and women is due to rise to 68 by 2046, so working longer will be a fact of life for those entering the workforce today, but these findings suggest that increasing numbers of pensioners will be forced to work later far sooner than this."
The research found that more people in the north were expected to work on past the state pension age than in the south.
Finance directors in companies based in northern regions expect an average of 16% of their workforce to be aged over 65 in 10 years time, compared with just 2.4% in the south.
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