UK risks missing golden opportunity among over 50s

The UK could miss a historic opportunity to boost employment among the over 50s, according to new research from independent think tank the Resolution Foundation. The analysis finds that the UK ranks 15th out of 34 OECD countries, for older workers, lagging the five top countries for by over fifteen percentage points. Closing this gap would mean around 1.5 million more people in work.

The report argues that there is a strong desire for longer working lives and a strong need, particularly for those on low to middle incomes.  It notes that:

• Most pension saving takes place after age 50 and only one in four is currently saving enough to retire at State Pension Age
• Two out of three older workers say they want to continue working up to or past pensionable age
• Older women face particular barriers to work, with only 60 per cent of older women employed versus 72 per cent of older men and a large gender pay gap.

The report argues that planned increases in the state pension age are a step in the right direction, increasing financial incentives for older workers to remain in employment, particularly for women.  But it warns that without parallel reforms to tackle the other barriers to older employment, the change will hinder rather than help some older women who are unable to find or keep employment.

The study identifies six key barriers which need to be overcome to support greater employment amongst the over 50s:

• Lack of adequate financial incentives to remain in, or return to, work
• Significant caring responsibilities
• Lack of employment support to move back into work, including training
• Limited access to flexible working opportunities
• Continued prevalent age discrimination
• Poor health

Gavin Kelly, Chief Executive of the Resolution Foundation, said:

“Older workers have fared comparatively well in our jobs market in the last decade but the truth is we’re still nowhere near the podium internationally.  There are very few opportunities boost living standards in the coming years and we can’t afford to squander one.  These findings should spur us on to make our labour market fit for older workers, from giving tailored employment support, providing higher quality part-time work and finally biting the bullet on a social care settlement to relieve caring pressures.” 

Notes to Editors

The new report, Unfinished Business: Barriers and opportunities for older workers, is available in advance from the Resolution Foundation press office and will be available to download on Wednesday 8 August from www.resolutionfoundation.org

A second report, to be published later this year, will give detailed policy recommendations designed to increase opportunities for older people to have longer working lives. The policy recommendations put forward will draw on lessons from the top performers globally as well as an assessment of the impact of recent policy initiatives in the UK.

The UK ranks 15th out of 34 OECD countries for employment among 55 to 64 year olds. The five best performing OECD countries for employment rate for 55-64 year olds are Iceland, New Zealand, Sweden, Norway and Switzerland. The average older employment rate of these countries is 72.3 per cent compared to 56.7 per cent in the UK.

Only one in four people in work aged between 50 and State Pension age are likely to be able to meet their target income in retirement if they stop working at State Pension age. Two thirds (64 per cent) of older women would like to retire after 60. The same proportion of men would like to retire at or after 65.

For men born before 6 December 1953, the current State Pension age is 65.

For women born after 5 April 1950 but before 6 December 1953, their State Pension age is between 60 and 65.