Older workers to stay in their jobs for longer

27/11/2009

The financial pressures of the credit crunch have led to money problems among older workers - meaning that many are planning to stay employed past the official retirement age.

According to the new Employee Outlook survey from the Chartered Institute of Personnel and Development (CIPD), 71 per cent of over-55s are planning to work for longer.

Two years ago, this total stood at just 40 per cent.

However, the credit crunch and recession has since put the personal finances of many households under strain - with income worries increasing due to pay freezes, rising unemployment and tighter bank credit.

Pension plans have also lost value due to the near-unprecedented turmoil on the global stock and bond markets caused by the crisis.

Charles Cotton, CIPD adviser for reward and employment conditions, commented: "With more people planning to work past 65, employers will have to accommodate older workers and motivate those who wish they could be elsewhere.

"Employers need to review how they are helping their employees save for retirement to get value from their pension spend."

Kevin Still, EuroDebt director, added: "Our concern is threefold for many over-55 individuals and couples. Firstly, it is obvious that many pension pots haven’t performed very well in recent years and will deliver a lower than expected income in retirement. Secondly, that many have under provided anyway through their working life and there would have been a shortfall anyway. Thirdly, and most alarmingly, many are going past their retirement age with unsecured debts in excess of the national average of just over £21,000. EuroDebt’s average unsecured debt for over 60 clients on a Debt Management Plan [DMP] is over £29,000, with one third still having a mortgage to pay.

"This is often not about maintaining a lifestyle, it is about basic financial survival where people do not want to put their home at risk."

Tags; Retirement Money Problems, Job loss,

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