The Great Unretirement takes hold.
High inflation, soaring mortgage rates and unaffordable rent is leading older people to return to work while others are delaying their exit from the labour market. The Randstad 2023 Workmonitor report recently highlighted a significant decline in the number of people who believed they could retire before 60 – from 61% in 2022 to just 50% now – indicating widespread concerns about the future. More than a quarter (26%) of those 55 and over said they would hold off from retiring. A third (32%) of the UK’s workforce want to retire by 60, and 14% said they plan to do so as soon as possible.
As economic realities set in and workers are forced to dip into their savings and pensions, 78% of those we surveyed said their financial position is preventing them from stepping down from work as early as they wanted. In fact, 5% said they don’t want to retire at all, and 10% are waiting for a specific milestone, which can be financial or a life event. Almost 1 in 10 said they feel a sense of obligation to their employer, leading them to delay their retirement.
Currently, the state pension age in the UK is currently 66 years old for men and women. But this will start gradually increasing from 6 May 2026; gradually rising to 67 for those born on or after April 1960.? A decision on whether to bring forward the rise in state pension age to 68 was delayed this year, with ministers pledging to return to it after the next election.
In order to gauge a better understanding of how the workforce feel about financial security, we asked over 6,000 individuals whether they would rather retire earlier with a smaller monthly pension payment or later with a larger monthly pension payment, as part of our 2023 Randstad Employer Brand Research (REBR).?
Nearly half (49%) of the 18-24 year olds surveyed said they expect to work longer for a higher pension pay out, whereas those closer to retirement age (aged 55-64) are happy to retire earlier for a lower pension payment. Splitting the data by gender, women said that they are slightly less likely to work beyond the suggested retirement age, with 38% opting to work longer compared to 41% of men.
About REBR: The Randstad Employer Brand Research (REBR) survey was completed by over 12,000 UK workers, 163,000 employees globally, and 6,000 employers. The comprehensive survey provides data for the world's most reputable and largest-scale employer branding insight report. Click here to download the 2023 report .
Coping with soaring prices.
Our research into how the nation’s workforce are managing finances for their future also examined other ways they are coping with today’s soaring prices. As part of our REBR research we asked respondents “Would you consider taking a second job to help pay for the increased cost of living?”.?
Across all ages, the majority told us that they either have a second job or are considering one. Looking deeper into age demographics, 16% of adults under 35 said they had already taken a second job — while another 51% said they were considering it.?
Working a second job has become a lifeline for some workers but a reason for concern for some employers as well. In some cases , workers needed the extra income from a second, or even third job to cover the cost of rent and essential bills, but others are “overemployed ” by holding two full-time jobs at once without the knowledge or consent of their employers.
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In other news.
We’re pleased to share that Randstad delivered a solid performance in the second quarter of 2023, despite challenging conditions across our markets.?
We’re also excited by our recent agreement to acquire Grupo CTC, which provides outsourced industrial, logistics, and sales & marketing services to customers in Spain and Portugal.
Hear more from our CEO Sander van 't Noordende as he talks through our Q2 performance, trends in the world of work, and the areas of growth for Randstad:
Randstad UK shortlisted for four awards.
We're delighted to share that we have recently been shortlisted for a total of FOUR awards!?
Global Recruiter Industry Award nominations:
Recruiter Award nominations:
We are incredibly proud of these nominations, which recognise our team's dedication, innovation, and commitment to excellence in the recruitment industry.
Thank you to our exceptional team, clients, and candidates for their continued support. We eagerly look forward to the awards ceremony and the opportunity to celebrate our accomplishments.?