With a growing skills shortage across multiple sectors, businesses across the UK have been looking for a solution to tackle this growing issue. At an REC event on the 24th January, a passable solution was offered with agreement on all sides. To try and get retired people back into the workplace. This is something that may even be favourable for those over 50 too, according to a survey from CV Library. (91% of unemployed UK professionals over 50 are considering returning to the job market (cv-library.co.uk))
However whilst the idea is favourable to many, one of the major issues that this idea currently possesses is that the problems regarding pensions, as well as exactly how to encourage those who have retired to come back have not currently been resolved.
Let’s determine what we currently already know:
- Anyone who reaches State Pension Age and wishes to continue working will no longer pay National Insurance
- State Pension Age varies between 61 and 68 currently, based on date of birth and gender
- You do not have to claim your State Pension the moment you hit the age for it and can continue working without paying National Insurance
- If you do claim your State Pension, any work you do will be taxed under a separate tax code
- Anyone born before 25th September 1956 is still eligible for the Winter Fuel payment even if you are working full or part-time.
Whilst this knowledge will be useful to those of a State Pension Age, we also need to look at why there are many between the ages of 50 and 65 who have either retired and are happy to stay that way, or who are looking to get back into work and are struggling. ONS (Office for National Statistics) released a report last year looking at this, and whilst we will attach their findings here, we thought we should highlight certain parts of it such as:
- Among those who would consider returning to work (58%), the most important factors when choosing a paid job were flexible working hours (32%), good pay (23%), and being able to work from home (12%).
- one-quarter (25%) of adults said they left work for retirement, slightly lower than wave 1 (28%)
- a much higher proportion of adults aged 50 to 59 years said they would consider returning to work in wave 2 (72%) than in wave 1 (58%)
- in wave 2, a higher proportion of those aged 50 to 59 years would consider returning to work for the money (65%) than in wave 1 (56%)
- Just over one-third (38%) of those aged 50 to 54 years said they were very or somewhat confident that their retirement provisions will meet their needs, compared with more than half (55%) of those aged 60 to 65 years being very or somewhat confident that their retirement provisions will meet their needs.
Full report here: Reasons for workers aged over 50 years leaving employment since the start of the coronavirus pandemic – Office for National Statistics
It is overwhelmingly clear that many businesses are less interested in hiring older workers than younger ones, and this is an issue that may be discouraging people from the job market that could otherwise be of major benefit. To quote the director of the REC: ‘The truth for businesses is that they and the economy cannot afford to lose the career experience, skillset and seasoned judgement of older workers in such a tight labour market.’
At Zoop we are committed to helping anyone find permanent work, whether it be on a full or part-time basis, and we offer roles that allow some staff to work from home as well. For those that may be struggling to find the right job for them in the market, get in touch with us and we will find the right vacancy for you.