1-IN-3 SCOTS TOO POOR TO RETIRE

ONE in three older Scots says they are too poor to retire and must keep their jobs to make ends meet.

Soaring numbers of over-50s now have to work longer hours and remain in employment beyond state pension age just to pay their bills, according to a report. the research has sparked fears that not enough people are putting away sufficient money to retire at a time of their own choosing.

the Scottish government report, published by edinburgh university’s Business School, also found that employers are not doing enough to help older people by providing them with flexible working practices. It said: ‘a third of the older people sample group... cited financial considerations as the key motivation to continue working.

‘this subset of older people indicated that the timing of their retirement would be closely tied to whether or not they had sufficient financial resources

to ensure a reasonable standard of living without income from paid employment.

‘Some were already working beyond state pension age; others anticipated that they would need to continue working beyond state pension age in order to maintain their standard of living.’

Half of the people interviewed made reference to their financial circumstances when discussing retirement.

Around a quarter indicated they would like to retire before reaching state pension age but could not afford to do so.

The proportion of those aged 50-64 who say they work more hours than they want to rocketed from 12 per cent in 2012 to 16 per cent in 2016.

Researchers said: ‘There is evidence that a significant minority of older workers would like to work fewer hours than they do currently, even taking into account a loss of income.

‘Over-employment of older people aged 50-64 has been steadily increasing, suggesting that older people may wish to reduce their working hours while remaining in employment.

‘Financial circumstances and rises in state pension age, while important, are far from the sole determinants of whether or not people will work for longer.’

They added: ‘It is clear that choices over later working life are highly conhe

‘I will be working until the end’

strained for those on lower incomes, those in low-skilled jobs and those with significant caring responsibilities. These circumstances most often interact to disadvantage older women in particular.’

However, interviews with employers showed many are now more willing than in the past to recruit older workers.

Brian Sloan, of Age Scotland, said: ‘This report highlights that many older people either continue working beyond their pension entitlement age, or want to do so, for numerous reasons.

‘Some feel under more financial pressure to keep working, especially those for whom the state pension would be their main or only source of income.

‘This pressure may have intensified by the move towards less generous occupational pensions and a need to move to part-time or more flexible working because of caring responsibilities.’

One male employee, aged 59, told researchers that he kept working because was still paying off his mortgage and his pension would not ‘be enough to give me a decent standard of living’.

A female employee, aged 55, said the paltry state pension would not fund her retirement. She added: ‘I think I’ll be working until the end.’

Scottish Labour interim leader Alex Rowley said: ‘The SNP and Tories have persistently let older people in Scotland and across the UK down.

‘The SNP has stripped £1.5billion out of local services since 2011, while the Tories have threatened to scrap protections for pensioners.

‘A Labour government would protect the pensions triple-lock and create an economy that works for the many and not the few.’

Employability Minister Jamie Hepburn said: ‘A rising employment rate among older people shows the labour market is increasingly recognising the skills and experience older people can offer.

‘We are determined to enable older people to remain in employment for as long as they wish, and we will do all we can within our current powers to improve the employment situation for workers of all ages.

‘That is why we have carried out this research and we will be examining these findings to determine how we can help ensure older workers achieve a good worklife balance.’