The numbers are in, and they’re telling us something important.
According to research we commissioned from Opinium in 2023, we estimate that 49 per cent of working Brits under the age of 66 – or a whopping 19.2mn people – intend on working well beyond their state pension age.
Given all that’s happened over the past few years (for example, the runaway CPI inflation that hit 11.1 per cent in late 2022), it comes as little surprise that this owes predominantly to financial concerns.
More specifically, of those planning to work longer, the top three reasons are:
- An insufficient pension (36%)
- Worries about the cost of living (30%)
- Uncertainty about how long pension savings will last (29%).
Along with financial insecurity, another two key worries for this group are the possibility of deteriorating health due to the extra years in the workforce and being unable to work, despite the need to, due to poor health in later life.
The dark cloud of uncertainty
It’s clear that the cost-of-living crisis has only added uncertainty to what is already a period of particular vulnerability in an individual’s economic life.
And as could be expected, people are re-evaluating their plans.
For those left with little choice in the matter, it’s understandable that this prospect may not be welcome.
Despite the downside, there are silver linings to be found. More mature workers are a huge asset to the workplace, bringing years of experience as well as a wealth of skills, resilience and insight to the table.
All of which can be advantageous to both an employer and a company’s younger workers.
It’s also clear that employers can respond to this mature demographic by offering precisely those benefits most attractive to a talent pool differentiated by a need for greater security and protection.
Perks work
When asked what benefits would be of most use to those working past state pension age, 45 per cent of respondents to our 2023 survey said income protection.
This was followed closely by critical illness cover (39 per cent) and life insurance (38 per cent).
A quarter (24 per cent) thought access to a rehabilitation service (which helps you get back into work after a serious illness) would be the most useful.
These insights are more than mere trivia.
Benefits can play an important role in a prospective employee’s decision whether to accept an offer.
For a perk to be mutually beneficial, employees need to see it as a valuable and worthwhile addition to their remuneration.
A third (34 per cent) of all British workers have been swayed to take a job because of a competitive benefit package or company policy.
But they need to be well communicated.
With the importance of benefits noted, having competitive perks means very little if these aren’t promoted properly to prospective and existing employees.
Worryingly, we found that a significant number (20 per cent) of UK employees hadn’t received any information about their company’s benefits and perk packages when joining their current employer.
Income protection, critical illness cover, and life insurance could prove indispensable to those who, under unfortunate circumstances, desperately need them.
These are not minor conveniences, and they warrant the resources required to ensure that these receive some necessary time in the spotlight.
The simple truth is that for a perk to be mutually beneficial, employees need to see it as a valuable and worthwhile addition to their overall remuneration.
This is why it is important for providers to go to significant lengths to design communications that group clients can use to promote policies.
The key take aways
A large section of the UK labour force below the age of 66 is planning to work beyond their current state pension age.
Understandably, they have substantial concerns about how long their pension savings will last and their future ability to cover daily expenses.
On top of this, they worry about how ill-health could jeopardise income security at a particularly vulnerable period of their lives.
This is where good insurance products can really offer great value to both employers and employees.
By incorporating group income protection, group critical illness cover and group life insurance into benefits packages, employers can respond to this demographic’s needs while attracting (and retaining) an important pool of talent.
However, to maximise the advantages gained, good communication of these perks and their value is of paramount importance.
Rus Waygood is sales manager, group protection, at Canada Life
