Retirement is typically envisioned as a period of leisure, hobbies and travel, following several decades of hard work. However, heightened living costs, longer life expectancy and a rising state-pension age threatens to disrupt this key part of the social contract.
Financial challenges are already driving retirees to return to the workforce in a trend that has been dubbed unretirement. The insurer Legal and General estimates that 2.8 million people in the UK have already returned to the workforce, after a period of retirement, with 37% doing so to meet increased living costs.
There is also a growing cadre of over-65s who don’t want to leave the workforce, according to Lyndsey Simpson, the CEO and founder of 55Redefined, an organisation that champions the over-50s and advocates for age diversity.
She claims that unretirement is currently being driven by people who want to continue working. “They don’t feel ready to hang up their hat and go potter around the garden or look after their grandchildren,” she says. “They feel too young.”
However, for many, unretirement may soon be a matter of necessity rather than choice. “The next generation, which hasn’t had the benefit of owning a house and certainly haven’t got the benefit of a final salary pension, will almost all need to work for longer,” Simpson says. “They will need to work until their mid-70s to be able to afford the life that they’ve been living.”
The ability to transition in and out of retirement has also been aided by more flexible forms of working, according to Chris Eldridge, the UK CEO of Robert Walters, a recruitment firm.
He says: “There are various types of unretirement – from retirees taking conscious micro or soft retirements as strategic career breaks or soft-launches into retirement, to those who decide on more permanent moves triggered by financial or social factors. Current flexible-working practices and ongoing skills shortages will be an ideal playground for anyone considering unretiring.”
Defeating ageist attitudes
Three-quarters (77%) of employers regard unretirement as beneficial, according to a Robert Walters survey, with 36% viewing the trend as crucial for helping to fill skills gaps. Yet, many people of retirement age feel overlooked for opportunities and undervalued by employers.
Simpson says companies have been slow to react to the UK’s aging population and their impact on the country’s workforce.
“The UK’s shift to an aging population has snuck up on a lot of companies,” she says. “We’ve added 30 years to life expectancy since the retirement age of 65 was introduced and it doesn’t really work for people anymore.”
An employee’s age doesn’t matter. We want to understand our employees needs and ambitions and that’s the same for every single person
One of the main issues is that most companies focus their training and development on younger talent and line managers, Simpson says. “It’s the largest group of workers that are under invested in and the group that can add the most productivity to companies,” she adds.
B&Q, the DIY retailer, is addressing this imbalance. It currently has 820 employees of various ages undergoing apprenticeship training, with its oldest graduate being in their 80s.
“An employee’s age doesn’t matter. We want to understand our employees needs and ambitions and that’s the same for every single person, regardless of whether they’re a year away from retirement, unretired or a school-leaver,” explains Vishal Thanki, director of talent and culture at B&Q.
In March, Alan Wrigley, a 91-year-old greeter and meeter for B&Q, was declared a ‘national treasure’ at the Pride of Retail Awards for his fundraising efforts. The Oldham-based employee has raised more than £175,000 for charity through sponsored activities such as bungee jumping and diving with sharks.
“Alan joined us when he was 70, so he’s a brilliant example,” Thanki says. “He’s come into our business, rejuvenated a big part of that store and served that community really well.”
Flexible futures
Offering flexible routes back into work can also help companies attract and retain former retirees.
For example, Phoenix Group, a FTSE 100 insurance firm, allows staff to choose their working hours and location from the first day of employment. Phoenix’s chief people officer, Sara Thompson, says: “It’s about the outputs, not the inputs, so to speak. We try to get away from clock-watching.”
The company is also exploring ways to offer flexibility around the months people work, which has been particularly appealing to those approaching retirement. “We have peaks around financial-reporting times, so we’re looking at ways to get people back from retirement to work these months on a short-term basis,” Thompson adds.
If you blend innovation with experience, then you will see a better financial return from your business
She admits the policy has faced challenges. There were difficulties around creating systems that ensured cover throughout the working year, as well as ensuring buy-in from leadership and managers. But Thompson maintains that the overall impact is positive: “It’s helped people who are in the later stages of their working life and those who are perhaps facing personal challenges and just want to work a bit less.”
Phoenix also offers staff assistance with late career planning and a ‘midlife MOT’, which assess employees’ “health, wealth and workplace wellbeing”. Thompson adds: “We encourage people to map out their skills, strengths and passions and then see how the company can help people achieve them.”
Such policies have no doubt contributed to the age diversity in Phoenix’s workforce, with employees ranging from 17 to 74 years of age.
As the British workforce continues to age, companies will have to support, retain and attract staff from multiple generations. There is a massive business case for multi-generational teams, according to Simpson. “If you blend innovation with experience, then you will see a better financial return from your business,” she says.
Businesses that can get ahead of this curve by attracting former retirees back to the workforce, could be at an advantage.
Retirement is typically envisioned as a period of leisure, hobbies and travel, following several decades of hard work. However, heightened living costs, longer life expectancy and a rising state-pension age threatens to disrupt this key part of the social contract.
Financial challenges are already driving retirees to return to the workforce in a trend that has been dubbed unretirement. The insurer Legal and General estimates that 2.8 million people in the UK have already returned to the workforce, after a period of retirement, with 37% doing so to meet increased living costs.
There is also a growing cadre of over-65s who don’t want to leave the workforce, according to Lyndsey Simpson, the CEO and founder of 55Redefined, an organisation that champions the over-50s and advocates for age diversity.
