Nearly half (49 per cent) of Brits who are not already retired, representing around 19.2 million savers, plan to work beyond state pension age (SPA), research from Canada Life has revealed.

Of those who are planning to work beyond state pension age, the average individual expected to work until they are 72, up from the estimated 70 years old in 2022, when Canada Life last conducted similar research.

Finances were the top reason for working beyond SPA, as 36 per cent said that they would continue working as they don’t think their pension will cover their day-to-day expenses. Of this same group, more than half (52 per cent) were aged 55 or over.

In addition to this, almost a third (30 per cent) were worried about the cost-of-living crisis, while a further 29 per cent were not sure how long their money will last, and 18 per cent admitted that they have not prepared for retirement.

However, money was not the only thing keeping UK workers in the workplace beyond state pension age, as nearly a quarter (23 per cent) said they will continue working as they enjoy the routine of work, while 20 per cent said they like their job.

There were also concerns about staying in work at an older age though, as 34 per cent of savers expressed concerns that they will not be able to enjoy their old age, while 33 per cent were worried about their health deteriorating because of working longer, and a quarter (24 per cent) about not being able to spend quality time with family.

Commenting on the findings, Canada Life protection sales director, Dan Crook, stated: “It’s clear the cost-of-living crisis is making people re-evaluate their plans with many of those who are approaching retirement now facing the possibility of working beyond their state pension age.

"For those who have to work in order to make ends meet, it’s understandable that this prospect may not be welcome.

“However, the positives that work offers should not be ignored, for both the employee and the employer. Older workers are a huge asset to the workplace, bringing years of experience as well as a wealth of resilience and insight that can benefit both younger workers and the company they work for.

“Regardless of the reason for people continuing to work beyond the state pension age, employers have a duty of care to ensure they support an inclusive culture and understand the changing needs of older colleagues.

“Employers should foster a culture where their older workforce feels able and comfortable to continue their working lives. This comes through understanding the individual needs of their workforce, which change depending on which stage of life they are at."

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