Confusion reigns over UK retirement age

A YouGov survey shows two thirds of
British workers think they will retire by 65. Only a third of workers think
that they will work until they are over 65 and just one in ten believes they
will still be working in their 70s.

Research by Croner, workplace information and
consultancy services specialist, questioned almost 1,400 UK working adults,
found that 22 percent see themselves working until 60 or younger and 44 percent
until 65. The findings are a surprise given the Conservative Party’s
announcement that it would raise the state retirement age to 66 for men and 63
for women by 2016, and recent suggestions from the Institute of Directors
and the National Institute of Economic and Social Research (NIESR) that the
pension age should be raised to 70.

Gillian Dowling, employment technical consultant at Croner, says: “There are
definite signs that the retirement age is going to increase but, as our
research shows, people are still unsure of what to expect and are not preparing
to work past 65. As further Government consultation on the national default
retirement age is only set to start next year, this will remain an area of
uncertainty for both employers and employees for some time.”

Men are more likely to think
they will work past 65, with 38 percent saying this compared to just 31 percent
of women. Those under 25 see themselves working longer than any other age group
(40 percent) and this number decreases with age until rising again with the over
55s, (38 percent), suggesting that the attraction of retirement decreases as
the time draws closer.

For those who see themselves working longer, the top reason for doing this is
financial concerns (68 percent) followed by enjoyment of work 41 percent and
changes to the law (39 percent). Also important are keeping busy 38 percent and
living longer (27 percent. While there are financial and social benefits to
working longer, some of the respondents felt that those over 65 do become less capable
with over a quarter (27 percent) saying this is an issue