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IPE special report May 2018

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UK: most see no need for set retirement age

UK – Most people do not see the need for a mandatory retirement age, according to a new survey.

A survey by the Chartered Institute for Personnel Development found that while 79% of respondents agreed that retirement is something to look forward to, 66% disagreed with the idea of a mandatory retirement age.

The survey comes after newspaper reports that carmaker Honda plans to raise the retirement age for its UK workers from 60 to 62.

The CIPD said in a statement that its first ever survey into attitudes towards age, pensions and retirement “shows that two thirds of those surveyed do not believe in a set retirement age”.

Seventy-eight percent of the 25-50 year olds surveyed said they would like to retire before age 60. Many respondents were confused about their pensions, the survey found. “Only one in four of the respondents have calculated what they would need to retire comfortably, and this was mainly those over 50 and working,” the CIPD said.

“Only 13% of under 25s and 18% of 25-50 year olds know how much they need to retire comfortably,” it added.

The CIPD’s adviser on reward and employment conditions, Charles Cotton, said: "The findings reveal a disappointing level of ignorance around pensions. Three quarters of employees have not worked out how much they need to save to enjoy a comfortable retirement, a third of people covered by an occupational pension scheme do not even know what type it is, while a around three in 10 of them are unsure how it operates.

He said the government and employers “must tackle this lack of understanding”. But he said companies recognise that a good pension scheme is as important as a good salary.

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