A quarter of workers approaching retirement say they will have to work past the age of 65 because low interest rates have left them with less savings than they planned.
Research suggests that more than 7 million workers have had their retirement plans dashed by low interest rates that have sucked growth from savings.
Financial firm Canada Life says the figure includes 16% of workers who were considering working past retirement age and now feel they have to and 8% who did not want to work into retirement but now have no choice.
Those that are resigned to working past retirement blame their finances.
Nearly half (44%) say that they lack the pension savings to retire at 65 years old -up from a third of workers a year earlier.
Lack of financial planning
Nearly a fifth (18%) say the state pension does not pay enough for them to retire.
However, 38% remarked that they enjoy their jobs so much that they do not mind working into retirement.
The firm’s Paul Avis blamed the financial stresses faced by retiring workers on interest rates remaining so low for so long and the failure to save enough into pensions.
“The truth is people are having to work for longer because they have not saved enough,” he said.
“An older workforce does have benefits. People have more skills and experience, but employees tell us they are concerned about health and safety as older employees tend to have more injuries and illness.”
Benefit compensation packages
Our research has found workers of all ages would welcome a change in benefit packages for all workers to cover these worries, said Avis.
“Many workers also feel benefit packages should change to include income and critical illness protection to reflect the needs of older workers. This cover can offer a financial cushion to workers who have to decide whether they are fit enough to carry on working,” he said.
Another report by Canada Life in 2012 revealed that younger workers feel they may be blocked from promotion and salary increases if older employees work past their planned retirement age.
“A third feel their career paths may be obstructed,” said Avis.
