Almost one in four UK workers say they expect to work past the age of 65 as a result of low interest rates, according to research by Canada Life Group Insurance. This is equivalent to 7.2 million UK employees, with poor returns on savings taking its toll on the nation’s retirement plans.
Overall, 23 percent of employees have seen their retirement plans affected by low savings rates since the 0.5 percent Bank of England base rate was introduced seven years ago. This includes 8 percent who did not want to work beyond 65 but have now resigned themselves to doing so, and 16 percent who had contemplated working past 65 but now believe low interest rates will probably push them to do so.
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Overall, two thirds of UK employees expect to work beyond the traditional retirement age of 65. This continues to climb as the reality of a rising State Pensions Age and the abolition of the default retirement age in 2012 becomes clear (2015 – 61 percent; 2012 – 35 percent)
Younger generations fare particularly badly: 85 percent of those aged 21-30 believe they will have to work beyond the age of 65. This is in stark contrast to those soon to retire, with just 58 percent of 61-65 year-olds saying they are likely to work beyond the traditional retirement age.