The Press and Journal (Inverness, Highlands, and Islands)
UK needs over-55s in work Report claims older staff could boost economy by £80bn
Bringing more people over the age of 55 into the workforce could boost the UK economy by £80billion, according to a new report.
The study’s authors suggest the money could help meet the rising care and pension costs of the country’s ageing population.
Professional services giant PwC, which conducted the research for its Golden Age Index, has called for reforms to the pension system
“The life experience of older workers makes them hugely valuable”
and financial incentives to make it easier for people to work longer.
With a 70% employment rate for 50-65-year-olds, the UK ranks 19th out of the 34 countries from the Organisation for Economic Cooperation and Development in the study.
PwC said matching Sweden, the best-performing EU nation in the list at 82%, could deliver the extra £80billion, boosting the UK’s gross domestic product (GDP) by 4.2%.
The company’s chief economist, John Hawksworth, added: “As the number of people over 55 continues to grow and life expectancy increases, the UK needs to make it as easy as possible for people to continue working for longer if they wish.
“This would boost both GDP and tax revenues, so helping to pay for the increased health, social care and pension costs of an ageing population.”
Within the UK, England’s 70.6% rate of employment for older workers was ahead of Scotland at 68.8%, Wales at 66.5% and Northern Ireland at 63.6%.
PwC said regional differences seemed to hinge on the three “key factors” of economic performance, educational attainment and gender disparities.
The research revealed a UK average employment rate of 64.9% for women aged 50-64, compared to 75.4% for men in the same age group.
Mr Hawksworth said: “Regions with fewer older workers with university degrees and a larger gap between male and female employment tend to have the lowest employment rates for older workers.”
He added: “Reforming pension systems and providing financial incentives to encourage later retirement will be key to governments increasing the number of older workers.
“Measures to combat age discrimination and support lifetime learning in the face of rapid digital and technological progress are also required.”
Iceland kept its place at the top of PwC’s Golden Age Index, a position it has held since 2003.
Israel has gained 10 places in the rankings since 2003.
Carol Stubbings, global people and organisation leader, PwC, said: “For employers, flexible working and partial retirement options can pay dividends, as can redesign of the workplace to meet the needs of older workers. Flexible working policies can incentivise women to remain in work longer, so having the right policies in place will increase the employment rate of those over 55 and may help to reduce the gender pay gap which is shown to increase with age.
“The life experience of older workers and the skills they have acquired throughout their career make them hugely valuable to the modern workforce.”