Fall in employment as workers progress through their 50s
While the population of employees working beyond 50 is growing, the UK is witnessing a continuing fall in employment participation as workers progress through their 50s. In the age group 35-49, nearly nine-in-ten adults (85%) are active in the labour market. This drops to nearer five-in-ten (56%) by the time we reach the 60-64 age group. Some of this population may have chosen to retire early, but many will have not.
This comes at a time when the state pension age is rising above age 65. Representing the largest single source of income in retirement (43%) for the average pensioner, the state pension age will determine many peoples’ target retirement date.
Employers need to take action to ensure those employees that want to continue working through their 50s and 60s feel supported to do so.
Commenting, Alistair McQueen, Head of Savings & Retirement at Aviva said: “Twenty million workers worrying about a longer working life is not good for the individual, nor UK plc. As the state pension age rises, millions of workers will seek to keep working through their fifties and beyond. But the continuing fall in employment participation as we age suggests many are struggling in this endeavour. For individuals, this represents a loss of earning capacity which will negatively impact their income in retirement.
“For UK plc, this loss of participation represents a huge loss of talent, skill, expertise and experience. For the UK to thrive, we must capitalise on the talents of all, regardless of age.
“Aviva has introduced Mid-Life MOTs for our people aged 45-and-above to ensure this population feels supported and prepared. These sessions provide our growing population of mid-life employees with targeted guidance on how to manage their wealth, work and wellbeing, with early results encouragingly showing improved confidence among our mid-life employees. At Aviva, we are committed to ensuring that age is no barrier to opportunity.”
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