Cost-of-living concerns have made older workers and retirees more concerned about money. As household and personal budgets continue to feel the squeeze from inflation, more people are becoming motivated to return to work.
New research from Aviva, a UK-based multinational insurance company, found that only 13% of workers in the UK over 55 believe that their pension will provide them with enough money to retire comfortably.
The report, Working Lives: Fit for the Future, also found that 10% of employers have for the first time introduced support for retaining over-50 employees in the last year and that 76% of employers think it is important to retain employees over 50, with almost a third (32%) saying it is very important.
The report’s findings come from interviews conducted with more than 1,000 UK workers in May.
In the 2023 Spring Budget, the government plan included a £70 million investment in support for over-50s staying in or getting back to work. In response, Andrew Harding, FCMA, CGMA, chief executive–Management Accounting at AICPA & CIMA, together as the Association of International Certified Professional Accountants, welcomed the “returnerships” for people over 50. “[It] is an interesting idea that … will be important if we are to fill skills gaps which currently exist in the UK,” Harding said.
To attract talent within this demographic, employers must first understand that the world of work for older workers may be perceived differently, the Aviva report said. While many older employees would consider returning to work for financial reasons, they are less likely than those in other age groups to say that remote working makes them happier.
Instead, many in the older cohort are motivated by the social aspects of the workplace. The Aviva report cited 2022 data from the Office for National Statistics showing that the top reason for returning to work is money (63%), followed by the social company or a job they would enjoy (47%).
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