Prudential Reveals Workers Beyond Retirement Age To Double In 10 Years
Released
on: November 12, 2009, 8:33 am
Author: Prudential
Industry: Financial
Prudential has revealed that UK businesses are bracing
themselves for a surge in staff looking to delay retirement with around
1.8 million people expected to be working beyond traditional retirement
ages in just 10 years.
The findings from new research* commissioned by Prudential among finance directors
at UK businesses found 24% of companies expect staff to work beyond retirement age
in the next 10 years, with the proportion of people in the workforce who are past
traditional retirement ages expected to more than double to 1.8 million people**.
Larger companies expect to see an even greater proportion of their workforce working
beyond retirement, with 39% of finance directors at larger firms expecting to have
to accommodate requests from staff to work longer.
UK companies anticipate this will mean around 6.3% of their workforce (equivalent to
1.8 million people across the UK working population) will be made up of people
working beyond statutory retirement ages in 10 years, more than double the current
proportion of 2.6% of company workers (equivalent to around 752,700 people***) who
currently work past retirement.
The study also found that in the past 12 months alone, 7% of finance directors have
reported an increase in the number of employees asking to work past traditional
retirement ages.
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. Employers have told us that their staff costs could
rise as their employees work for longer.
"Workers face the stark choice of either having to save more for their pension from an earlier age
or having to work longer if they are to avoid taking a significant drop in their
standard of living in retirement. Early pension saving is
critical and we strongly encourage people not to delay starting a pension."
The research also identified a clear North/South divide. Companies in the north of
the country expect an average of 16.2% of their staff to work past the statutory
retirement age compared with an average of 2.4% in Greater London and the South
East.
- ENDS -
The information contained in Prudential UK's press releases is intended solely for
journalists and should not be used by consumers to make financial decisions. Full
consumer product information can be found at www.pru.co.uk
Notes to Editors:
* Survey conducted by Continental among 507 financial directors of UK companies, 300
from small and medium sized organisations and 207 from large companies. Survey was
conducted in October 2009.
** ONS Labour Market statistics: There are currently 28.95 million people in the UK
in full and part time employment. 1.8 million = 28.95 x 6.3%.
*** 752,700 people = 28.95 x 2.6 per cent.
About Prudential
"Prudential" is a trading name of The Prudential Assurance Company Limited, which
is registered in England and Wales. This name is also used by other companies within
the Prudential Group, which between them provide a range of financial products
including life assurance, pensions, annuities, equity release, savings and investment funds. Registered Office at Laurence Pountney
Hill, London EC4R 0HH. Registered number 15454. Authorised and regulated by the
Financial Services Authority.
Media enquiries:
Juliette Emblem
Prudential
3 Sheldon Square
Westminster
London
W2 6PR
020 7150 3177
www.pru.co.uk
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