The State Pension age is currently 66 years of age, for both men and women, and this is set to rise further. For those born on or after 5th April 1960, the age increases to 67, and pension age will be 68 for those born on or after 5th April 1977.
The pension age has changed several times throughout the years. From 1942 to 1980, for example, the State Pension Age was 60 years for women, and 65 years for men.
Unless you have a substantial private pension pot, this ultimately means that many people will now work beyond 65 in order to ensure they can adequately fund their retirement. Data from the Office of National Statistics indicates that the average UK pension pot is only £32,700––so the need is pressing for many British workers.
According to 2024 data published from Centre for Research in Social Policy (CRSP) at Loughborough University, the minimum income standard (MIS) is now £14,366 a year for single pensioners and £22,292 for couples. With the full rate of the new State Pension at £221.20 a week, there is a significant shortfall for many.
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The desire to work longer isn’t purely financial. Many people feel fit and well and want to carry on working. But, according to new research from TotalJobs, age bias remains a significant barrier for jobseekers and employers alike.
With 35% of workers in the UK aged 50 and over, it is worrying that the research indicates that 59% of recruiters admit to making age-based assumptions.
57 is ‘too old’
Almost half say that candidates over the age of 57 are “too old.” It’s no wonder then that a third of job seekers over 50 worry that their age will hinder their job prospects. With 15% of over-50s saying they have been rejected from a job because of their age, this is a significant fear.
Adding to older workers’ woes are the fact that 42% of recruiters feel pressurised to hire younger candidates, 97% prioritise cultural fit when hiring, yet only 50% of recruiters rely on age as a factor for determining that fit.
Older workers’ tech skills are also in doubt for 56% of recruiters, and more than half of UK businesses have not yet implemented strategies to increase their age diversity.
These figures reinforce a mindset that companies and hiring managers may already have. This can cause them to overlook a highly experienced and skilled talent pool––aka those over 50–– and undermine the confidence of this cohort.
That mindset may be catching, as the study found that many candidates internalise these biases, with 25% of job seekers over 50 holding back from applying for jobs due to their age.
Attracting older talent
There are a lot of older people in the workforce. According to CIPD, in 2022, over 10.4 million older workers accounted for 32.6% of the workforce, with more than 1.2 million workers over the age of 65. CIPD says this figure will only continue to grow.
The TotalJobs research found that three quarters of full-time employees 55 and over would be open to work beyond the retirement age. That, it says, is of huge benefit with the potential to add £11.9 to £23.5 billion to the UK economy annually.
Rather than seeing older workers as obsolete, Sarah Vickerstaff, a professor at the University of Kent says that “the ageing population is often seen as a societal problem, but this perspective overlooks the opportunities it offers the workforce. Encouraging older individuals to stay, retrain, or return to work offers a powerful solution to recruitment challenges and skills shortages”.
So what can be done to change minds and encourage older workers to not only apply for jobs, but to remain in the workforce? This cohort isn’t too bothered about childcare support as many of them are past this stage, but they do value flexibility in their working hours, as well as preferring remote or hybrid work.
Wellness programmes, professional development routes and pension contributions also feature heavily. And in terms of attracting over-50s in the first place, job ads have a key part to play. These workers want to see professional language, a focus on skills, not values, and an emphasis placed on experience.
The research says that, “By clearly showcasing the full range of available benefits, particularly flexible working options, employers can attract a broader talent pool, including older candidates”.
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