By Graham James, Director at Pluxee UK
Retirement is no longer a guaranteed golden age in the UK. With people living longer and the cost-of-living crisis many retirees are forced back into work. This isn’t just a UK problem – countries worldwide face similar challenges with rising life expectancies and ageing populations. Balancing the needs of older and younger generations and ensuring sustainable pension systems is a complex issue for policymakers.
As life expectancy climbs and financial pressures mount, the retirement threshold is rising faster than anticipated. According to the International Longevity Centre, the UK state pension needs to reach 71 by 2050 to maintain a healthy worker-to-retiree ratio. This looming change will affect everyone from businesses to individuals, especially those approaching retirement. Proactive measures are crucial for promoting healthy ageing and supporting employee transitions.
The wellbeing equation
The impact of a higher retirement age on wellbeing is a complex equation. Those who are financially prepared, with sufficient savings or pensions, may not be significantly affected. However, for individuals reliant on state pensions or lacking savings, extending work could create significant financial strain and negatively impact their overall wellbeing.
Unfortunately, retirement planning often gets a bad rap. Seen as a tedious or “boring” task, younger employees tend to put it off until much later. This approach, however, can have serious consequences down the line. While it might not seem important now, it will be later.
To promote a healthier and more prosperous future for their employees, organisations and business leaders should take an active role in promoting financial literacy and raising awareness about retirement planning. Employees with a clear financial plan and peace of mind about their future are more likely to be engaged, productive, and less susceptible to stress and anxiety related to finances. This ultimately benefits the organisation by creating a more positive and stable work environment.
Impact on skills and training for an ageing workforce
The future of work, and the pace of change, means continuous learning for all employees regardless of age. However, older workers may face challenges keeping their skillsets relevant in an evolving job market. Employers can play a vital role in bridging this skills gap. By offering upskilling and reskilling initiatives, they can equip older workers with the latest knowledge and tools needed to thrive in their current roles or transition to new ones.
Creating a culture of lifelong learning within the organisation sends a powerful message. It not only empowers older workers to take ownership of their professional development but demonstrates the company’s commitment and investment to their long-term success.
Mentorship programmes can further strengthen this culture. Experienced workers can act as mentors, passing on valuable institutional knowledge and industry best practices to younger colleagues. In turn, younger workers with tech expertise can mentor older workers, helping them navigate new technologies and digital tools. This creates a win-win situation, promoting a two-way exchange of knowledge and expertise that benefits both generations.
This agile way of working not only benefits older workers by keeping them engaged, but also strengthens the business, creating a more skill and knowledgeable workforce.
Working with, not against, technology
New technology offers both opportunities and challenges for older workers. While automation offers relief from physically demanding tasks, mastering new tools and processes can feel overwhelming. The key here is to bridge the tech gap by turning technology into an ally.
Leaders can create a positive learning experience by offering training tailored to individual preferences. For hands-on learners, instructor-led sessions provide a guided approach. Self-paced learners, on the other hand, can benefit from bite-sized online modules that allow them to progress at their own comfort level.
Furthermore, promoting peer learning and mentorship programmes can encourage a more collaborative environment. Pairing older workers with tech-savvy colleagues encourages knowledge sharing across generations. These supportive relationships create a safe space for asking questions and overcoming challenges with new technologies.
The nuanced approach
The impact of increasing the retirement age on wellbeing is complex and multifaceted, varying depending on individual circumstances and where you are in the world. This makes it difficult for employers to create a one-size-fits-all approach. However, by considering the implications and implementing supportive measures, organisations can mitigate any adverse impact on the wellbeing of those affected by changes in retirement age.
For example, organisations can implement flexible work arrangements, provide training and upskilling opportunities, and inspire mentorship and succession planning. Prioritising employee mental health and wellbeing is key, and organisations can offer financial planning and retirement counselling as well as introduce transitional employment options.
Integrating supportive measures into daily operations can empower older workers to confidently transition towards late retirement. Building a workplace culture that embraces inclusivity, flexibility, and continuous learning benefits the entire organization. A diverse workforce rich in experience can drive innovation, facilitate knowledge transfer, and ultimately enhance long-term business sustainability and success.
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Graham James, Director at Pluxee UK
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