Many do, according to research by the Chartered Institute of Personnel and Development (CIPD).
In fact, more than a third (37%) of respondents out of a total of 1,656 employees surveyed believe that they will have to work past the generally expected retirement age of 65. The CIPD’s Employee outlook: employee attitudes to pay and pensions report, also found that 49% of respondents aged 55 or over predict they will work past 65 years of age.
However, it wasn’t necessarily down to financial pressure as the most common reasons cited for continuing to work was to remain mentally fit (32%), though 27% attribute it to the desire to earn enough money to continue to enjoy themselves – by going on holiday, for example.
The research also found that 55% of respondents believe they will get a pay rise over the next year compared to 66% who said the same last year. 31% do not expect any salary growth in 2017. However, only 25% believe that their employer is prepared to meet the needs of employees aged 65 and over. More worryingly, just over a quarter of those respondents aged 55 or over do not know that the state pension age will increase from 65 to 66 between 2018 and 2020.
Moving down a generation there is still confusion, with a further 48% of respondents aged between 35 and 54 are unaware that the state pension age is set to increase from 66 to 67 between 2026 and 2028. Over a third of respondents either don’t realise that they need to have paid national insurance contributions for 10 years to get the minimum state pension, or are unaware that they must have paid national insurance contributions for 35 years to get the full state pension.
Considering the pensions crisis is rarely out of the news, many employers appear to be remarkably under-prepared for dealing with an ageing workforce, according to the CIPD. Meanwhile, some employees appear to be unaware of their own positions. If you are a business owner, it’s time to start reviewing your people practices to help nurture more mature employees – many of whom are still full of energy and enthusiasm for their work. We can help with any workplace pensions queries you may have.
For more information please contact me or your usual Bishop Fleming adviser.
Posted by Ian Saunders on May 23, 2017
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