UK workers have the oldest expected retirement age when compared to other countries in Europe, according to new research from HR and payroll services specialist SD Worx. The research showed the oldest expected retirement ages broke down as follows:
- UK (66.67 years old)
- The Netherlands (65.94 years old)
- Belgium (65.33 years old)
- Germany (64.48 years old)
- France (64.36 years old)
In exploring how future UK generations will perceive retirement, over half (54.3%) of 18–24-year-olds say that more pay will make them work beyond the point at which they will be able to claim a state pension. Over a third (37.1%) of this demographic feel that reduced working hours will make them postpone retirement, and a quarter (27.1%) say that a less mentally taxing role would have the same effect.
On the other end of the age spectrum, only two in ten (19.4%) workers aged 55+ in the UK could be persuaded to extend retirement with more pay. However, they are typically more engaged in their work than their younger counterparts. A quarter (26.4%) of workers in this age group feel engaged in their roles daily, compared to just one in ten (8.6%) 18–24-year-olds.
Across Europe, workers aged 55+ view rewards packages with varying amounts of positivity. Germany is the most positive (62.4%), followed by the Netherlands (57.3%), the UK (49.7%), France (48.4%) and Belgium (47.6%).
Colette Philp, UK HR Country Lead, SD Worx said:
“In some ways, retirement comes at the wrong time in life, given that our research suggests older workers feel more energised and motivated in their roles compared to their younger colleagues. But employers who want to encourage employees to stay on later will still need to ensure their salary packages are competitive, as that is the top priority for workers when considering extending their careers.
“Companies offering competitive rewards packages, alongside flexible benefits and salary incentives, can keep their workforces engaged as they develop through their careers, and potentially encourage them to continue happily working into their autumn years.”
The shift towards working from home seen during the COVID-19 pandemic may help enable older workers to remain in the labour market for longer.
In a Saga poll in 2018 on behalf of the Department for Business, Energy and Industrial Strategy (BEIS), when asked what workplaces should do to become more welcoming to older workers, 78% of those aged 50 years and over said that workplaces should introduce flexible working, including working from home arrangements.
In April to May 2021, older workers aged 50 to 69 years who were working from home reported that it had improved their work-life balance and wellbeing.
There is some evidence that working from home may delay retirement plans for some older workers. In June and July 2020, those who were working entirely from home were more likely to say they were planning to retire later (11%) compared with those not working from home (5%).