Fuller working Lives : A Partnership Approach – the latest from the Department of Work and Pensions
Today Damian Green, The secretary for work and pensions published “Fuller Working Lives: A Partnership Approach’. This new employer led strategy profiles the demographic change facing the UK and the opportunities and challenges an ageing workforce has on employers, individuals the government and society. A link to the Fuller Working Lives report is available at the end of the article.
“There are challenges for the UK labour supply, given the ageing workforce and rate of exit from the labour market”
The report states that whilst it is good news that people are living on average almost a decade longer than their grandparents there are clear implications of this on the economy, for employers and on individuals financial security, health and wellbeing.
In 2010, one in four of the working age population was aged 50 and over; and this is projected to increase to one in three by 2022. By 2035, people aged 50 and over will comprise half of the UK adult population (source: ONS (2014) Population Estimates and 2014-based Population Projections).
With this in mind ensuring that individuals lead Fuller Working Lives is important for individuals, employers and the economy.
“The average age of leaving the labour market has increased over the past two decades, but it is still lower than it was in 1950 and is not keeping pace with increases in life expectancy”
For individuals:
According to the report delaying retirement until 65 instead of 55, a male average earner could have £280,000 extra income and might increase his pension pot by 60%.
Retiring at 63 instead of 55, a female average earner who took a 10 year career break, could have £180,000 extra income and might increase her pension pot by 50%
(source: DWP modelling, Fuller Working Lives Evidence Base 2017).
Being in appropriate work is good for an individual’s health, both physical and mental.
For employers:
In o
rder to meet future demand it will be increasingly important to recruit, retain and retrain older workers. Over the next five years to 2022, there will be just under two million more people aged 50 years and over and three hundred thousand fewer people aged 16-49 (source: ONS (2014) Population Estimates and 2014-based Population Projections).
The report and suggestions aim to support older workers to remain in and return to the labour market; one in four men and one in three women reaching State Pension age have not worked for five years or more.
“All employers want to attract and develop the best and most productive workforces they can, and it is clear that this means employing people from all walks of life, including older workers, who each have their own set of skills to offer”
For the economy:
Adding just one year to people’s working lives could add 1% to GDP per year; that would be equivalent to £18bn in 2015, according to ONS data (2015).
The report has been pulled together with the help of leading employers. Working together they identified the steps needed to ensure the retention, retraining and recruitment of older workers.
Summary:
According to Damian Green this new Strategy sets out the case for action business to business, as well as the importance of Fuller Working Lives for individuals and the key actions that Government is taking. It is underpinned by analysis of the attitudes, behaviours and experiences of individuals and employers which are integral to the achievement of the Fuller Working Lives ambition. To support individuals aged 50 years and over to remain in and return to the labour market and tackle the barriers to doing so.
You can read the full report here
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