Older workers rethinking retirement
A new report by the International Longevity Centre (ILC), commissioned by Brightwell to co-incide with 55/Redefined’s National Older Workers Week (25-29 November 2024), reveals that more people, especially women, are economically active in later life.
The future of ageing in an uncertain world report finds that people over 65 are more likely to be economically active than in the early 2000s, and for women this proportion has more than doubled. Today, 77.6% of men and 69% of women aged 50-64 are economically active. For people aged 65 and over, 14.9% of men and 8.9% of women are economically active.
In 2023, 45.7% of women aged 50 and over worked part-time, compared with 19.3% of men of that age. But the proportion of women working part-time has been falling, whereas the proportion of men working part-time has been increasing. In 2004, just over half (51.3%) of women aged 50 and over were working part-time, compared with 16% of men.
The report finds that technology will make work more flexible, changing when we work, where we work and how we work. Fewer of us will need to travel to our workplace; more of us will work from home or even from abroad. Although it notes that not all these opportunities will be open to everyone.
In 2023, 45.7% of women aged 50 and over worked part-time, compared with 19.3% of men of that age. But the proportion of women working part-time has been falling, whereas the proportion of men working part-time has been increasing. In 2004, just over half (51.3%) of women aged 50 and over were working part-time, compared with 16% of men.
The report finds that technology will make work more flexible, changing when we work, where we work and how we work. Fewer of us will need to travel to our workplace; more of us will work from home or even from abroad. Although it notes that not all these opportunities will be open to everyone.
Dr Vivien Burrows, Senior Research Fellow at the International Longevity Centre and author of the report said:
“We know how important meaningful occupation is for our health and wellbeing. The rise in the proportion of older workers is a positive trend but there are signs that this growth is beginning to stall with too many people forced out of work earlier than they would like. Ensuring that people can work longer means preventing ill health, challenging ageist attitudes, and embracing greater flexibility.
“Older workers have so much to bring to the workplace – knowledge, experience, life skills. The UK’s economic growth is increasingly dependent on their contribution.”
Morten Nilsson, CEO, Brightwell said:
“As life expectancy increases, the notion of a traditional retirement will need to be retired.
“In future, more people will be working into their sixties and seventies. For some this will be out of financial necessity as they simply won’t have enough saved for several decades of retirement. For others, working longer will be an active choice for the continued sense of purpose and social connectedness that it can bring. It’s important that more is done to ensure longer healthier lives so that people can maximise the opportunities of working into later life.”
Lyndsey Simpson, CEO of 55/Redefined said:
“Older workers represent an overlooked reservoir of talent and wisdom that modern workplaces simply cannot afford to ignore. It is also relevant to all of us either now or in the future as we will all at one point become an older worker.
“The businesses that we work with are embracing age-inclusive policies and investing in reskilling to unlock massive returns through reduced attrition and better outcomes through a ‘return on experience’. They are also future-proofing their growth by harnessing the only growing talent pool who demographically mirror the customers they are serving, who are also of course ageing. This isn’t just about economic necessity; it’s about giving people the opportunity to thrive in later life, combining purpose and productivity in equal measure.”
Notes and sources
Join in the discussion on National Older Workers Week using #NOWW2024 As the report states the proportion of women aged 50 to 64 who were economically active increased from 57.6% in 2004 to 69% in 2023. For men, the increase was slightly smaller, from 74.2% in 2004 to 77.6% in 2023. Among people aged 65 and over, the relative increase has been even greater: the proportion of women aged 65 and over who were economically active more than doubled between 2004 and 2023, increasing from 4% to 8.9%.
The full ILC report “The future of ageing in an uncertain world” can be downloaded here: The Future of Ageing Report :: Brightwell
Accompanying the report is a short guide for service providers which can be downloaded here: https://ilcuk.org.uk/wp-content/uploads/2024/09/ILC-FOA-Service-provider-guide_final.pdf
Annual population survey
https://www.nomisweb.co.uk/query/construct/components/stdListComponent.asp?menuopt=12&subcomp=100#
Labour Force Survey (LFS) estimates by age and gender:
About Brightwell
Brightwell offers a comprehensive service to UK defined benefit pension schemes across funding and fiduciary, member administration and advisory services. Brightwell’s approach focusses on collectively owning problems, sharing solutions and collaborating for the long-term.
Brightwell won the Pensions Administrator award at the Pensions Age awards 2024. The Brightwell Pensions Academy won Training Scheme of the Year at the Professional Pensions Rising Star Awards 2023 and the Development and Talent Retention Award at the Pensions Management Institute’s Pinnacle Awards 2023.
About ILC
ILC is the UK’s leading authority on the impact of longevity on society. We combine evidence, solutions and networks to make change happen.
We help governments, policymakers, businesses and employers develop and implement solutions to ensure we all live happier, healthier and more fulfilling lives.
We want a society where we all live happier, healthier and more fulfilling lives, where tomorrow is better than today and where future generations are better off. ILC wants to help forge a new vision for the 100-year life where everyone has the opportunity to learn across our lives and where new technology helps us contribute more to society.
Published:
25 / 11 / 2024
