Workers over age 50 facing forced retirement
A new report released by the Institute for Fiscal Studies reveals people over the age of 60, are in a precarious position now that the furlough scheme has ended in the UK.*[i]
Recent statistics regarding the furlough scheme showed that close to 1 in 10 workers still on the scheme in July were over the age of 60. This was the highest of any age group, showing these workers are particularly vulnerable to not being retained by employers. Alongside this, data shows that it may be harder for age 50+ workers to find employment, especially compared to younger workers; six months after losing a job
· 64% of those aged 18-49 had found employment
· but only 35% of workers 50+ had found employment
and it appears the pandemic is set to worsen this trend.
Ultimately, more experienced workers may be being forced into an early retirement due to the circumstances that the pandemic has created.
Responsible employers planning redundancies will most likely be offering some form of outplacement support, yet this may be insufficient for those planning to downshift their work or even fully retire, whether by choice or circumstance.
In a recent report by the FCS[ii], 24% said retiring was the third biggest emotional impact on them, after children and marriage. The preparation needed to navigate this major life transition goes well beyond the obvious financial and pensions planning. There is much an employer can do to support someone’s wellbeing in this situation:
· Signpost resources (see the list below!)
· Offer workshops face to face or online to help those contemplating retirement or downshifting explore the actions and decisions needed, as well as the psychological impacts
· Provide one-to-one coaching to help people navigate the discussions, decisions and implications
If you want to provide more than just financial support and outplacement, consider some conversations around the following:
· What is your relationship with work?
· What/who will you miss most about work?
· What aspects of work are you looking forward to leaving behind?
· What concerns do you have about retiring?
· How might you celebrate this significant event?
· How will you involve your partner in the planning? What is the impact on them?
· How will this affect your social network and family relationships?
· How prepared do you feel for the change/transition?
· What adjustments have you already made?
· What challenges might retirement present to you?
For more information about how you can support employees as they transition to retirement, have a look at our course or schedule a complimentary discussion:
