Workers are planning to take advantage of the opportunities offered by the abolition of the default retirement age, according to new research by insurer Canada Life Group.
Over a third of employees think they will work past the age of 65, but this statistic will force employers to bear the implications of having an older workforce, with the focus being on benefits and the likelihood these will become more expensive as a result.
However, there seems to be a lack of understanding among workers when it comes to how long they can remain in their job. The default retirement aged was scrapped only a year ago, but research found that 48pc of workers were unaware of the changes.
This suggests that while many people may wish to work for longer, some many not be aware that there is the option, and will simply retire when they think they should.
Of those surveyed, men in particular said they feel they are more likely to continue working for longer after the removal of the default retirement age, with 44pc agreeing they would still be working past their 65th birthday. In comparison, only 31pc of women said they would be working after the age of 65.
Some believe that an older workforce will create problems, particularly for younger employees. Nearly a third 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 43pc of those aged 51-60 forecasting a ‘job-blocking’ effect.
Others expect that having older workers will change the working dynamic, with a fifth forecasting changes because older people may have more health issues. As a result, 27pc of workers think that employers will be forced to hand out incentives in order to encourage people to retire, with 31pc of 51-60 year olds believing this will be the case.
Paul Avis, sales and marketing director at Canada Life Group Insurance, said: “For older workers, health care 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 adviser to ensure they are getting the most for their money, they won’t be faced with an unexpected bill!”
Article from Telegraph