Older people want to remain in work: ONS

According to the latest ONS employment figures, the UK unemployment rate has fallen far faster than previously expected and now stands at 6.4 per cent the lowest level since the fourth quarter of 2008. 

However, the figures also show that rising numbers of older people are remaining in work, with record employment levels for over 65s - a 291,000 increase since May 2010, up 36 per cent over that period. 

This could be partly down to more older people being healthy and choosing to work longer, or some feeling that their financial situation precludes them from retiring fully.

Ros Altmann, the government’s older workers champion, said: “Many older people are happy to do volunteering and stop work if they can easily afford to. Many also make do on very low incomes as well. That is all fine.

“However, there are millions of people who are over 50 and not working - and would like to be able to earn a living - perhaps the majority on a part time basis, but they just don’t like having no work at all. Many don’t need the money but enjoy the idea of working, although at less stress and a slower pace perhaps than in their 30s or 40s.

“The problem is that many can’t find work and are not taken seriously in the job market. On top of this, of course, many do not have hugely generous pensions and that will increasingly be the case going forward. Therefore, the attraction of having some extra income is very appealing, but the job market does not easily facilitate this. There is still so much ageism in the workplace.”

Nicky Templeton, director of partnerships for over-50s charity The Prince’s Initiative for Mature Enterprise, said there was a growing trend of older people returning to work.

She said: “We are living longer and more and more people are starting to realise that they might have to continue working if they are going to retire on an income that will support them in later life.

“But on the other hand, older workers today are very different to generations before; they are healthier, more active and while there are people who are continuing to work out of necessity, there are those who want to carry on working as they they’re not ready to stop and have lots more to offer.”

She warned that the over 50s, however, often struggle to find work as they remain victims of age discrimination and are more likely to be long-term unemployed compared to the other age groups.

Ms Templeton added: “We are pleased to see the government has started to take action to help change the status quo, especially with the appointment of Ms Altmann as the older workers’ champion. We now need businesses to stop seeing the over 50s as a burden and implement mixed-age workforces, where older workers can use their high level of skills and experience to benefit their workplaces as well as train-up younger employees to bridge future skills gaps.”

Prime believes that keeping older people in work doesn’t lead to fewer opportunities for young people. Ms Templeton explained: “The economy doesn’t operate on a ‘one-in-one-out’ system and if we keep older people engaged in the workforce, they are more likely to spend more in the economy, create opportunities for other people, stay healthy and engaged in their communities and reduce some of the burden on the tax payers to support them. It’s a win-win situation for British families and our economy.”

Adviser View

Alan Higham, director of retirement for Fidelity Worldwide Investment and founder of Retirement Angels, highlighted the recent fall in the consumer price inflation data, and said this was not likely to help pensioners.

He said: “People entering into retirement should not underestimate how much inflation is likely to impact their purchasing power.

“They should make sure their essential expenses are covered by secure income sources which will keep pace with inflation. Those reaching State pension age before 6 April 2016 should particularly consider using their private pension to defer State pension to increase their guaranteed inflation linked income.”

 Table: ONS Figures

• Over 50s have not been squeezing young people out of the job market. Rising numbers of older workers are also associated with rising numbers of younger workers. 
• The number of over 50s in employment has been steadily rising. The total number of workers in the UK rose 5.8% between May 2010 and Q2 2014, with employment for the over 50s increasing faster than for younger workers.
• The number of unemployed over 50s has not declined at a rate comparable with the number of younger unemployed.  Unemployed people aged 16-49 fell 18.8%, while for those aged 50-64 it fell by only 5.3%. 
• Economic activity for 50-64-year-olds has been gradually rising compared to economic activity for 18-24-year-olds, which has been relatively stable. In Q2 2014:
  • 71.4% of 50-64-year-olds were economically active.
  • 71.0% of 18-24-year-olds were economically active.
  • 85.9% of 25-34-year-olds were economically active.
  • 87.1% of 35-49-year-olds were economically active.