The phenomenon of ‘Unretirement’ is witnessing a significant surge among the over 50s in the UK.
- Approximately 3 million individuals over 50 have returned to the workforce this year.
- The rising cost of living and insufficient pensions are driving factors for this return.
- ‘Unretirement’ also fulfils social and mental stimulation needs for many older individuals.
- Employers are urged to adopt strategies to support this demographic’s unique needs.
The emergence of ‘Unretirement’ is notably reshaping the landscape of the UK’s workforce. Around 3 million of those over the age of 50 have re-entered employment this year. This demographic shift is influenced by financial pressures, as the cost of living crisis and inadequate pensions compel many to seek additional income, underscoring the economic challenges faced by retirees.
Beyond financial necessity, the return to work offers essential mental and social engagement. Retirees often find daily interactions limited, prompting some to work again to reconnect socially and stay mentally active. This trend is not unique to the UK, as evidenced by Japan’s high employment rate among seniors.
Research by the Royal London illuminates the financial struggles faced by many older adults, revealing that around 150,000 individuals live on less than £100 weekly from their pensions. Furthermore, one in five aged 66 and over rely solely on the state pension. These figures highlight the financial impetus behind ‘Unretirement’.
Matthew Vohs, CEO of O50C, notes a growing trend of ‘career changers’, with over 50s exploring new professional paths. He states, “A common theme… is that those who are experienced candidates… are choosing a complete career change.” This shift reflects not only financial need but a desire for fulfillment and new challenges post-retirement.
To support this demographic, employers are encouraged to offer flexible work arrangements. Such flexibility caters to the over 50s’ preference for part-time roles and helps businesses retain experienced talent. Flexible roles also align with the work-life balance desires prevalent among this age group.
Vohs stresses the importance of offering career development opportunities to older workers. Investing in training can lead to a stable, highly skilled workforce, mitigating skills shortages across industries. “If employers have the right incentives… it means they’re more likely to have a stable workforce,” Vohs argues.
Furthermore, retirement planning workshops serve as a valuable tool for businesses. They support employees nearing retirement and present post-retirement career options. Such initiatives can foster an inclusive workplace, benefiting from the diverse strengths of a multi-generational workforce.
This trend of ‘Unretirement’ presents both challenges and opportunities, urging employers to adapt and support older workers effectively.
