We’ve all heard the news about pension age being increased – a depressing thought for some, a welcome opportunity for others.
Certainly with Britons population ageing rapidly, there’s a marked increase in the number of people working into old age, which in turn is having an effect on employer attitudes to an ageing workforce.
A study by the Economist Intelligence Unit (EIU) has revealed that working into old age isn’t just a trend in Great Britain. Across Europe as a whole retirement age is being pushed further and further back. This in turn is forcing governments to increase pension age, seeing a surge in the number of people over 60 in the nation’s workforce.
For some people, the prospect of an ageing workforce and having to labour on into their late 60s is horrifying. Others, however, find that work is key in providing purpose and fulfilment in their lives, as well as income, be it necessary or desired. In fact for some, the key issue is the right to keep working, if they so wish, rather than be forced out at an arbitrary age limit.
Ageing Workers
The EIU study found that, by 2020, almost a third of companies expect a significant increase in the number of employees over 60.
“Population change alone will only deliver a modest increase in the number of older workers by 2020 but people are likely to retire later too,” comments John Ball, UK head of pensions at Towers Watson, which commissioned the EIU report.
Ball adds: “A combination of higher life expectancy and inadequate savings inevitably means working for longer, with higher state pension ages giving this a nudge. Everyone not already in their 60s has a state pension age above 65.”
The Office for National Statistics has predicted that the number of people over the age of 60 in the UK is expected to increase by 13% between 2013 and 2020.
Challenging for Employers
Ageing populations and the increase in over 60s workers expected in the coming years offers a number of benefits and challenges for employers. 40 to 50 years of work experience, coupled with still active and healthy employees, represents a huge potential asset for progressive thinking employers. On the other hand, an older workforce may increase demand for healthcare support or help with mobility.
“Employers should recognise that the employee benefits they offer need to be adapted to suit the whole workforce, regardless of age,” urged Mr Ball.
