Brits brace themselves to work longer

21/02/2008

The demand for working beyond 65 looks set to increase markedly in the next fifteen years. Research by "Future" involving 1,000 workers aged between 50 and 64  found that  38% of individuals plan to carry on working beyond 65 - compared to just 11% at the moment.

Interestingly, among those who said they did not plan to work past 65, 31% would change their mind if their employer allowed them to work flexibly. This change alone would result in a small majority of workers working beyond 65. 

Meanwhile a further fifth say that they would be tempted to carry on working past 65 if they were offered a deferred larger state pension. Men are more likely to plan to work beyond 65 than women, and finances are said to be the main driver behind these plans - which may reflect current concerns about individual finances and the overall economic outlook. 

The value of the research lies in the fact that Government policy could be changed now to do more to encourage older workers to stay on by extending the right to request flexible working and making pension arrangements more flexible. If the Government fails to do this, its target of having a million older workers in work will just remain a target - and nothing else.

The report also finds that employees are confused about the state of their finances and their pension arrangements in particular. Currently many employers are unaware of what they can and cannot do, so the government should clarify this as quickly as possible. In particular, the government should clear up the confusion around the taxation of employee assistance programmes which are predominantly used by employees who do not have the means to get legal or financial advice, and ensure that these remain tax exempt.