According to the latest report by Prudential, the number of people anticipated to work beyond the retirement age is set to double within ten years. The survey showed that an estimated 1.7 million people could end up working way past the normal state retirement age within a decade, which is roughly a 100% increase on the current figures. However, what is particularly interesting is the fact that a much higher proportion of Northern companies (compared to companies based down South) feel that their workers will have to stay on after the retirement age. Around 16% of Northern employers felt this way, compared to just 2.5% in the South.

Currently, only around 2% of the workforce consists of individuals who are past the retirement age, however a number of factors have led many organisations to believe that this could rise dramatically. The first reason is that, simply put, people are living longer and therefore have a greater financial burden upon retirement. It therefore makes sense that individuals will take longer to save a pot large enough to keep up their current lifestyles. The second reason is that due to the financial crisis many pension funds have lost a significant amount of value and therefore people do not have as much as they thought they did. And finally, the government can no longer sustain the full cost of an individual’s retirement, which people rely on. A recent survey by Axa suggested that 64% of the UK workforce is currently relying on a state pension.

The current situation leaves individuals with little choice. If they want to retire and maintain their current lifestyle they may have to bear another couple of years of work in order to do so. However, on the bright side with people living longer there will be plenty of time to enjoy the fruits of your hard work.