Many people in their forties will have been disappointed by the news that they are going to have to work longer before they can claim their state pension.
The UK Government has announced that 2037, not 2044, will be the year when the state pension age rises to 68. Age Scotland does not agree that this particular move was necessary, with forecasts for increased life expectancy stalling. However it has been clear for many years that as we live longer, with an ageing population and the abolition of the default retirement age, very many of us are going to have to remain in employment longer.
Age Scotland believes strongly that an ageing workforce should not be viewed simply as a challenge, but as an opportunity for our economy and our society.
The economic imperative is clear. Population projections suggest that the number of people above state pension age in Scotland may increase by nearly 30 per cent by 2040, but the working age population by only only per cent.
Already older workers are playing a bigger role in services and businesses across Scotland. More than 90,000 people over 65 are now in employment in Scotland, double the number in 2004. It is also important to recognise that the great majority of these people are not in work out of necessity, but because they want to be. 13 per cent say they do remain in work to pay the bills: that is a concern, and a reason why Age Scotland continues to campaign against pensioner poverty. But more than half of workers over 65 in Scotland say they are not ready to stop working yet.
Reasons given include; wanting to continue to use skills, to boost income, and to stay healthy and active. So the reasons for older people staying in work are far more positive than negative. For those who worry that older people continuing in work will reduce opportunities for younger people, studies dont bear this out. Dave Watson of Unison has written in The Scotsman to highlight research that shows if unemployed older workers returned to the workplace it would add 88 billion to the UKs economy.
The opportunities are tremendous, but there is a lot more to do if we are to enable more people to work longer. Across the UK there are one million people aged 50 to 64 who would like to be in work but are not. Most have left due to poor health, redundancy, or caring responsibilities. There is a rapid fall in employment rates over the age of 50. This means that more employers need to be proactive in providing better working environments for older people, tackling ageism and promoting models of working which support people with caring responsibilities and help workers keep well.
Age Scotland works with employers across the country to ensure more of our workplaces are age-friendly. The charity has developed Planning For Your Future workshops to help workers decide when and how they will make the transition to retirement, and what they can do now to ensure that they can enjoy retirement. These workshops can also be beneficial for employers by opening conversations with employees that enable more informed future workforce planning. Age Scotland also offers employers training on meeting the needs of an ageing workforce. We work with staff to promote age inclusive workplaces, exploring behaviours and opening minds so we challenge stereotypes, prejudice and stigma about older people. Age Scotlands Allied Health Professionals promote healthy active ageing within workplaces, encouraging routines and cultures which help employees keep fit, well and prevent a range of illnesses and conditions. Additionally, with dementia increasingly affecting employers as the workforce ages, we provide dementia aware training for employers and employees.
The Scottish Government has made clear that it wishes to do more to create age-friendly workplaces and help those older people who want to stay in work to do so. We look forward to working with government on this important agenda, and to continuing to work with employers across the country to provide better support for older workers. This is not only good for their staff, but great for their businesses as well as they draw on the skills and commitment of their older employees. If you want to find out how we support employers to take this important work forward you can find out more on http://www.nowandnext.scot
Brian Sloan, Managing Director of Age Scotland
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