Number of people expecting to work beyond 70, or never retire, increases

/ 10th August 2022 /

One in five Irish employees nearing retirement age expect to work beyond the age of 70 or never retire according to research from WTW.

The company’s Retirement Expectations research, carried out last December and January across 830 employees from large and midsize private employers, representing a broad range of industries, also shows that 75% believe they are saving less for retirement than they think they should.

Retirement is the benefit that employees in Ireland most want their employer to prioritise, the report concludes, particularly among male and older employees.

Overall, 21% of employees want their employer to support them with retirement benefits, with other areas including flexible work arrangements (16%), day-to-day finances (12%), managing health (9%) and investing in their career (7%).

There has been an increase in the number of employees who expect to work beyond 70, or never retire, since 2015.

Only 9% of employees aged 50 or older expected this in 2015 but the percentage has risen to 18% in 2022, in contrast to those aged under 50, where half expect to retire before turning 65.

The research has also shown that saving for retirement remains a concern, with 75% recognising that they aren’t saving enough for retirement. Those aged over 50 show the biggest gap between their ideal saving rate and what they actually save.

However, there was also an increase in the number of employees who say that their retirement plan meets their needs - 66% today compared to 52% in 2019 and 45% in 2015.

Head of LifeSight Maria Quinlan said: “Several factors could be contributing to working beyond retirement age or never retiring. Rising costs and economic uncertainty are clearly affecting retirement expectations, and this is necessitating working for longer.

“On the other hand, some employees in Ireland may want to work for longer to ensure that they will have the financial means and flexibility to enjoy the retirement they had planned for.

“In an increasingly competitive market, employers in Ireland must look to the strength of their overall retirement packages in relation to the needs of their staff. Retirement savings apps, for example, can help employees plan for their retirement and ensure they have sufficient savings in place.

Never retire — There has been an increase in the number of employees who expect to work beyond 70, or never retire, since 2015.

"Our research shows that about one in five employees in Ireland use apps for tracking retirement savings regularly, and 87% of those who say that their retirement plan meets their needs use these apps regularly.”

Retention is also linked to retirement benefits with 61% of employees in Ireland determining their company’s retirement program as a key reason why they are staying with their current employer. This is an increase from 41% in 2015 and 53% in 2019.

WTW is a New York-based consultancy, formerly Willis Towers Watson, with 550 people employed in Dublin, Cork, Limerick, and Galway.