Over a third (37%) of over-55s that are not retired think they will need to work beyond their state pension age, according to new research from Canada Life.

This figure would equate to more than 2.5 million people in the UK.

Canada Life stated that financial concerns around funding retirement is the key driver for people working beyond state pension age, with half of those who are aged 55 and over likely to work beyond thinking their pension will not be sufficient. The findings also indicated that 23% are not sure how long their retirement savings will last, while 18% of respondents said they have not prepared for retirement.

The research, based on a study of 2,000 UK adults during October, also revealed that of the millions of older workers who expect to be working beyond their state pension age, 46% are worried that working later will mean they can’t enjoy their older age.

However, Canada Life’s findings also highlighted that health is another key concern. Over two in five people (45%) are worried their health will deteriorate because they need to keep working, while more than a third (35%) are worried their health will inhibit their ability to work.

A further 16% stated that they are worried about being treated differently at work because their boss or colleagues perceive them as old, and the same amount are worried about not being able to spend as much time with their family. 

Canada Life technical director, Andrew Tully, commented: “As inflation soars at double digit rates and the cost of living crisis continues to bite, we are seeing a growing number give retirement a second thought. Not only are people now looking to work beyond their state pension age, but in some cases, we are seeing a retirement boomerang, with people either considering or returning to the workforce from retirement due to growing financial pressures. 

“Looking ahead, the older workforce is going to be critical to the recovery of the UK economy as it will help to alleviate severe labour shortages, however, it is also a warning sign that people’s finances are under significant strain.

“For anyone worried about how the extreme market volatility and cost-of-living crisis could impact their retirement savings, seeking the help of an adviser is a sensible step. Not only will they be able to discuss the options, but will help people plan the retirement they have worked long and hard for.”

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