Those working past retirement age set to double

Research from Prudential has found that the number of people working past the state retirement age is expected to double over the next decade.

A study by Prudential of UK businesses established that almost 25% of companies expect staff to continue working beyond the retirement age over the next 10 years.

The proportion of the workforce that defers retirement is expected to more than double to 1.8 million people - this represents the equivalent of 6.3% of their workforce, up from the current average of 2.6% that are working past pension age.

Martyn Bogira, Prudential’s director of defined contribution solutions, comments: “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.”

Last month, a report by Robin Ellison, pensions consultant at international law firm Pinsent Masons, said the retirement age needs to go up to match an increase in life expectancy.

“When state pensions were first introduced into Britain 100 years ago, the retirement age was 70 when life expectancy was about 73,” Ellison said.

“Everybody in the industry knows that [the age of retirement] should be 75.”

Currently, the state pension age is 60 for women and 65 for men, however it is being increased to 65 for both men and women by 2020. The statutory retirement age for both men and women will rise increase to 68 by 2046.

However, the Government is set to review this matter in 2010.

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