Most UK employees are approaching retirement with limited emotional or psychological preparation, raising concerns about mental health, identity loss and workplace transitions, according to new research published ahead of 2026 workforce planning reviews.
A study by organisation development consultancy h2h found that 53 percent of workers believe they are underprepared for retirement beyond financial planning. Nearly half (45 percent) said they worry they will lose their sense of purpose, and 39 percent were concerned about the mental health effects of retiring.
The figures are based on a survey of more than 1,000 employed adults across multiple sectors. The report, titled From Onboarding to Retirement: Rethinking Career Growth and Retention in Organisations in 2026 and Beyond, explores how attitudes to career development are shifting across different age groups, and how employers can support staff through major transitions, including the later stages of working life.
Mental health, purpose and identity at risk
While 61 percent of respondents said they were looking forward to retirement, the data suggests that enthusiasm is tempered by a lack of planning around lifestyle and identity. Women were more likely than men to feel positively about retirement — 64 percent compared with 58 percent — but across both groups, there was widespread anxiety about what the transition would mean in practice.
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In particular, 45 percent of workers said they were concerned about losing their sense of purpose once they stopped working. A similar number (45 percent) said they planned to take on part-time work after retiring, indicating that for many, leaving full-time employment does not mean stepping away from work altogether.
Susan Binnersley, managing director of h2h, said that changing expectations and longer working lives were altering the way people think about retirement and other career milestones. She said organisations needed to take a more holistic approach.
“The research has revealed a shift in attitudes towards the world of work, which is hardly surprising when you consider how much has changed in the last five years,” she said. “We still have a long way to go to ensure people take the necessary steps to prepare for the emotional impact of different life and career phases.”
Rise of micro-retirement and new expectations
One emerging trend is growing interest in “micro-retirement” — a term used to describe short breaks or semi-retirement phases before full withdrawal from work. The concept was shortlisted for Collins Dictionary’s word of the year for 2025 and appears to reflect changing views on the traditional retirement model.
The research found that 54 percent of those approaching retirement in the next decade were considering some form of micro-retirement. Among younger workers, the figure was even higher at 62 percent. Experts say this suggests a move away from a sharp end to working life and towards phased or flexible transitions that blend rest, learning and limited work.
Binnersley said employees across all age groups were seeking more sustainable ways to manage their careers. “With the retirement age edging upwards, we have a span of five generations in the workplace and it’s crucial that organisations learn to harness the benefits of multi-generational workforces rather than exacerbating the divide.”
Career mobility ‘still a challenge’
The study also examined employee attitudes to changing roles within organisations. Nearly half (47 percent) of respondents said it would be easier to leave their company and start elsewhere than to apply for a different role internally. Some 40 percent said they would worry about how their manager would react if they expressed interest in changing jobs within the organisation.
These figures raise questions for employers seeking to improve retention and internal mobility. While many organisations claim to support career development, workers may not feel psychologically safe enough to pursue opportunities within their own teams.
On average, UK workers expect to have had eight different employers by the time they retire, with more than a quarter (26 percent) anticipating that number will exceed ten. The report suggested this movement is not simply a matter of preference but may also reflect structural barriers to progressing within organisations.
Mentoring across generations
Despite concerns about workplace transitions, the research pointed to strong interest in knowledge sharing between older and younger workers. Among employees approaching retirement, 61 percent said they would like to mentor younger colleagues. Among younger staff, 73 percent said they would be open to mentoring and 76 percent said they would like to learn from older workers.
This mutual interest in cross-generational development may present an opportunity for HR leaders to improve succession planning and workforce cohesion while addressing some of the challenges linked to later-life transitions.
Binnersley said coaching and internal mentoring schemes could help ensure people experience each phase of their career with clarity and support. “With the right coaching and a shift in thinking, each new phase can signal a positive change and the start of an exciting new chapter filled with purpose and joy,” she said.
