In a recent study conducted by Robert Walters, statistics showed that 70% of UK-based employees believe that they will need to delay their retirement.
Currently, UK employees can choose to retire at 66 years old. However, with the cost-of-living crisis causing financial difficulties for many, the likelihood of retirement at 66 is becoming somewhat of a pipe dream.
Chris Eldridge, CEO of Robert Walters UK, stated: “The trend toward unretirement is driven by two factors: high living costs impacting pension savings, and hybrid-working arrangements allowing work in a more flexible capacity.”
The overall impact means that the UK will have an increasingly ageing workforce. Not only due to unretirement but the State Pensions Age (SPA) is also predicted to rise to 67 years old between 2026 and 2028.
77% of employers see this as a positive; bringing in more knowledgeable and experienced employees to bolster their workforce will be crucial in filling skill gaps.
Many of those choosing to come out of retirement, 89%, believe that despite the desperation to return to the workforce, their current employers may overlook their professional needs.
Chris Eldridge continued: “Whether positive or negative, there are many reasons unretirement is becoming more common, but it’s up to workplaces to ensure everyone reaps the benefits.”
Research from Standard Life, a long-term savings and retirement firm, believes the leading reasons for people coming out of retirement were due to pensions falling short of their financial needs, struggles with the cost of living, as well as wanting to boost earnings so they can enjoy a more comfortable retirement.
Chris concluded: “For years, managers have grappled with multigenerational workplaces without realising supporting those pursuing retirement might be the key.”