Pensions  

Altmann: economy needs retirement postponed

Altmann: economy needs retirement postponed

The UK could face a skills shortgage in 20 years if employers do not encourage their workers to postpone retirement for longer, a report has claimed.

The research from the Chartered Institute of Personnel and Development said there were 9.4m workers in the UK over the age of 50 and there was still a 64 per cent drop in the employment rate between the ages of 53 and 67.

The 31-page report, Avoiding the Demographic Crunch: Labour Supply and the Ageing Workforce, said that unless employers improve how they recruit and retain older workers they will struggle to fill 1m jobs by 2035.

Article continues after advert

Pensions minister Baroness Altmann said: “The analysis in this report can help us understand the challenges that the next 20 years present much more clearly.

“I hope employers will remain open-minded to recruiting and training older staff, as well as considering the benefits of flexible working.

“This is important for older workers but it is also important for the future of our economy.”

Earlier this month, Baroness Altmann gave her first maiden speech in the House of Lords, in which she pledged an independent review of the state pension age by 2017 and promised the triple lock would be maintained during the current parliament.