Older workers are money in the bank

Jun 26 2007 by Evening Gazette

WELCOME to our comment column, in which leading figures from the business community in the region present a thought-provoking view on an issue affecting their company or organisation or the wider community.

Today it’s the turn of Allan Wilkinson, area director for HSBC Tyne Tees.

QUESTION: What is the future of retirement?

ANSWER:

In 2001, for the first time in the UK, there were more people over 60 than under 16 and it’s predicted that by 2051, one in four of us, that’s a quarter of the population, will be over 65.

So what does this mean for businesses?

Working in the financial services industry I can safely say one thing with absolute certainty – that it’s one of the most significant issues facing organisations across the North-east today and it’s having a huge impact on how our workforces are defined and their aspirations for the future.

‘Active ageing' is the new phrase describing the increasing trend of active, working pensioners in the noughties.

The older generation as workers, volunteers and family members added £5.5bn in income tax, £4.2bn in voluntary work and over £50bn in family care to the UK’s coffers.

Recent age discrimination legislation supports changing attitudes to the older generations and shows how enforced retirement is already becoming out-of-date.

Historically, the more senior generations were ready to escape the confines of work to settle into a more leisurely pace of life, looked after by family members.

Recent research from HSBC shows that today, the retirement years represent an opportunity for a whole new chapter of life bringing freedom, happiness and satisfaction.

The research also shows how important being self-reliant and free of money worries is to people in the North-east and how strongly they feel about not depending on their children or families into old age.

Few trust the government to support them, but instead are becoming more inclined to take personal responsibility for planning and preparing for their retirement.

Many people in the UK plan to continue working after they retire and believe people should have the freedom to work as long as they want, most likely in a stable, comfortable part-time job that offers the flexibility and independence they desire.

This means employers can benefit from a genuinely motivated flexible labour force whose main priorities from their employment lean towards the holistic – meeting people, staying active and keeping their minds challenged.

The increasing desire for people to work longer also overcomes losing valuable knowledge and skills.

Employers in the UK are among the best for recognising the value of older workers and offering them flexible employment practices so it pays to keep ahead of the game and along with Sweden, employees in the UK retire at the latest age internationally.

UK employers, more than any others, are actively trying to recruit older workers.

Whether working beyond 60 themselves or offering free care to enable younger generations to work, there is no doubt our senior citizens are a strong factor driving the wheel of commerce in the UK and I would urge all businesses to consider the opportunities presented by this key transformation.