More than a third of UK employers say their staff are working longer and retiring later, yet most businesses remain unsure how to respond to the changing profile of the workforce, according to research from Canada Life.
The survey of 500 private sector employers and more than 3,200 members of the public found that 37 percent of companies are witnessing people retiring later than they did five to ten years ago. One in five (21 percent) reported cases of employees returning to work after retiring. This is a growing trend dubbed “un‑retirement”.
Despite widespread recognition of longer working lives, only 18 percent of employers said they are going to have to think differently about the profile of their workforce, while 56 percent admitted they are unsure whether they need to take any action.
Nick Harding, chief people officer at Canada Life UK, said the findings reflect a “profound shift” in working life.
“As people live longer and work beyond the traditionally defined retirement age, we are seeing changes in attitudes, openness and motivations for work in later life, alongside the emergence of a growing ‘un‑retiring’ population,” he said.
Benefits of multigenerational teams
The research highlights clear support for older workers. More than eight in ten (82 percent) private sector employees said they value them for their experience, and 84 percent of employers said they brought a different skillset to the table. Older staff were seen as particularly strong in customer‑facing roles, cited by 58 percent of employers.
Yet, a gap remains between employer perceptions and the reality of the workplace. While 55 percent of businesses said they were consciously building multigenerational teams, just 38 percent of employees described their workplaces that way.
Harding argued that businesses risk missing out if they fail to adapt.
“Multigenerational workplaces hold immense potential for innovation and collaboration,” he said. “By fostering open conversations, responding to the evolving needs of employees, and adapting roles to suit changing motivations, businesses can create inclusive, multigenerational teams that thrive.
“Embracing this shift isn’t only about meeting the needs of today’s workforce, it’s a vital step in building a stronger, more inclusive businesses in the future.”
Why people keep working
Canada Life’s report, Building longevity‑ready workplaces in the UK, suggests that money is not the only motivator for older employees. Only 25 percent of people said they continued working out of financial necessity. More than four in ten (42 percent) cited mental and physical health benefits, while a third (33 percent) valued being around people.
Other factors included feeling valued and appreciated, as well as the positive relationships of teamwork, (77 percent), and making a meaningful contribution to society and the community (66 percent).
The study also found many approaching retirement intend to adapt their roles rather than stop working entirely. Among respondents aged 65 and under, 41 percent planned to gradually reduce their hours, 38 percent said they would move to part‑time work, 36 percent intended to switch to less demanding roles, and nearly a quarter (23 percent) wanted to change their job type simply to remain around people.
Isle of Man pilot
Canada Life has been trialling new strategies to address skills shortages in its Isle of Man operations, where vacancies outnumber unemployed people nearly three to one. With the over‑50s accounting for 45 percent of the island’s population, the firm turned to this demographic to fill roles.
Working with consultancy 55/Redefined, Canada Life conducted research into what would keep older residents in work and adjusted recruitment accordingly. The initiative led to successful hires and a multi‑year plan to adapt HR practices and workplace culture.
Harding said the experience showed the business benefits of embracing demographic change.
“On the Isle of Man, where we faced a pressing talent and skills shortage, our pilot successfully tapped into the wealth of experience offered by the over-50s population,” he said.
“Multigenerational teams bring diverse perspectives that encourage collaboration and enhance customer experiences. Our Isle of Man pilot has not only filled roles but is also positively influencing our workplace culture.”
