Partner Article

Young workforce could be working until “at least 72” say PwC

Today’s young workforce could be working into their 70s if they if they fail to make use of employer pension schemes or contribute to private savings.

Based on current predictions, today’s young workforce are looking at a retirement age of at least 72, or older.

This news comes days after work and pensions secretary Iain Duncan Smith suggested the pension age will need to increase faster than anticipated, in line with further increases in life expectancy.

Lee Stamp from PwC’s North East practice commented that companies will begin to see a significant change in both their consumers and the demographic make up of their workforce.

He said: “Employers will need to be smart to the opportunities this presents, and be aware of the risks of increases in employment costs.

“The new shape of the workforce will cause employers to think about their employment philosophies and practices.”

Employers will soon be forced to accommodate an increasingly age diverse workforce, and will have to reconsider how they pay, reward,motivate, protect and communicate with staff.

He also added: “For individuals these announcements can erode their confidence in saving for their retirement , when the reality is that now is the very time that people should take responsibility for their retirement savings so they have solid options aside from the state pension.

“There is a pressing need for employers to provide their employees with more information and education about what they can do to save more for themselves.”

PwC’s report comes as the Pension Protection Fund announce UK pension funds have moved £117bn into the red at the end of August.

The deficit of the 6,533 final-salary schemes in the private sector had been £73.8bn in August last year.

This was posted in Bdaily's Members' News section by Ruth Mitchell .