Almost 2m people to delay retirement

Around 1.8 million people are set to request to work after traditional retirement ages over the course of the next decade, Prudential research shows.

A survey of finance directors by the life and pensions firm found 24% of companies expect staff to work beyond normal retirement age in the next 10 years, with the proportion of people in the workforce who are past traditional retirement age expected to more than double to 1.8 million.

Some 39% of finance directors at larger firms expect their workforce to request to work longer.

The study also found that in the past 12 months alone, 7% of finance directors have reported an increase in the number of employees asking to work past traditional retirement ages.

Prudential director of defined contribution solutions Martyn Bogira says: "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."

He explains the statutory retirement age for men and women was due to rise to 68 by 2046 so working longer will be a fact of life for those entering the workforce today.

However, Bogira adds: "These findings suggest that increasing numbers of pensioners will be forced to work later far sooner than this. Employers have told us that their staff costs could rise as their employees work for longer.

"Workers face the stark choice of either having to save more for their pension from an earlier age or having to work longer if they are to avoid taking a significant drop in their standard of living in retirement. Early pension saving is critical and we strongly encourage people not to delay starting a pension."