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2.0 CONTRIBUTION AND OPPORTUNITY

Opportunity and Contribution

• Scotland's older population make a significant contribution in the workplace, at home and in the community:
• • There are 72,000 people in Scotland working beyond State Pension Ages. ¹
  • 14% of people aged over 60 provide unpaid care to someone within the household. ³
  • 48% of all volunteering is undertaken by those aged 50 and over in Scotland ⁴
• Scotland's older population are consumers, investors and wealth creators:
• • Older smaller households are the most likely to have savings and investments than any other household type.
  • Similarly older smaller households are more likely than any other household type to have savings and investments of £75,000 or more. ⁵
• Scotland's growing older population brings with it opportunities:
  • Older households are becoming more digitally included. 39% of households headed by someone aged 50 to 59 have access to the internet. ⁶
  • There are currently 62,000 people aged 50 and over who are currently inactive but would like to work. This is an untapped resource.
  • The number of mature entrepreneurs is predicted to rise as older age groups increasingly set up new businesses on their own.

A Valued Contribution

There is much evidence which identifies the contribution that older people make to society and the economy: older people make contributions and stay involved through family, employment and communities. Evidence shows that most people continue to make valuable contributions to society after leaving paid work. Activities include voluntary work, learning activities, domestic work, caring for family members (including spouses, grandchildren and elderly relatives), helping out friends and neighbours, and active leisure pursuits.

A report for Age Concern ⁸ on the economic contribution of older people went some way in mapping the actual and potential economic contributions in the different regions of the UK. The report acknowledged that many of the social and economic benefits that older people's contributions make to society are on the whole not measured, and un-acknowledged.

As Carers

As identified in Chapter Four, caring responsibilities are common among people aged over 50. Unpaid carers are an essential and vitally important component of the system of support for people with assistance needs.

The evidence stresses the importance of the two-way dynamic of receipt and giving of care by older people and serves to correct views of older people as a burden. This is reflected in the views of older people themselves, stressing the importance to older people of interdependence and independence. Informal caring arrangements based on reciprocity are seen as contributing to the well-being both of older people and of the whole community in which they live.

Who are older Carers?

At the last Census, there was a total of 481,579 people in Scotland providing unpaid care, 19.5% of whom were above State Pension Age. In-depth research ⁹ into the characteristics and experiences of unpaid carers in Scotland using Scottish Household Survey data found that:

• 14% of those aged 60 and over provide care to someone out with the household, 4% of the same age group provide care to someone in their household.
• Almost a third of all carers are aged 60 years or older. The largest group of carers are aged between 45-59 years of age (37%).
• 40% of those caring within their own household are aged 60 years or over compared to 23% of those caring out with their household and 30% of non carers.
• Carers are increasingly likely to be older individuals. 25% of carers were aged over 60 years of age in 1999 compared with 30% in 2004.
• Older carers are more likely to provide care within the household; for example, 40% of those caring within the household are aged over 60 compared with 23% of those caring out with their household. Older carers within the household are more likely to be caring for their spouse or partner; 57% of those people who care for their spouse or partner are aged 60 years or older.
• Evidence suggests that the burden of care on older people may be increasing. The majority of older adults who provide sole care are more likely to provide continuous care, and the provision of sole care has increased overall, suggesting that levels of caring intensity are becoming greater among sole carers who care within the household.
• Caring can span a range of commitments from helping with shopping on a regular basis to providing continuous care.

A similar study of UK based data ¹⁰ found:

• The majority of carers provided some form of practical help such as preparing a meal, shopping and doing washing.
• A smaller proportion provided more personal forms of help; 26% of carers gave some form of help with washing, administering medicine and providing physical help.
• One in five carers have cared for someone for at least 10 years and almost half have been carers for 5 years or more.

Being an unpaid carer also impacted on employment participation, with carers being less likely than non-carers to be in paid employment. ¹¹ This is echoed in research which found that carers in employment may consider leaving work if they find it difficult to balance work and caring. Studies of carers who have left work suggest that they might have been able to stay in work had flexible working arrangements been made available to them. ¹² Having multiple roles for example caring for children and parents while working is becoming more common, potentially affecting 18% of women and 11% of men in the UK.

As Volunteers

Recent data shows that 48% of all volunteering in Scotland is undertaken by those in the 50 and over age group.

Data ¹³ on the specific contribution of volunteering shows that:

• 19% of those aged 50 and over gave up time to help as an organiser/volunteer in the past 12 months. 22% of those aged 60-74 and 13% of those aged 75 and over gave up time to volunteer in the past 12 months.
• 44% of older volunteers aged 60-75 and over gave up at least 5 hours of their time in an average month and 45% of those aged 75 and over gave up the same amount of time.
• The most common volunteering activity amongst older volunteers is raising money, committee work and helping to organise/run events.
• Figure 28 shows volunteering activity by urban/rural classification. In general the proportion of volunteering for all age groups increases with rurality. In large urban areas, 17% of 50-59 year olds volunteer compared to 30% of that age group in remote rural areas.

Figure 28: Volunteering by age groups and urban/rural classification

Source: Scottish Household Survey (2005)

The contribution made by the over 50's who volunteer in Scotland equates to approximately 65 million hours of a Scottish total of 135 million, equivalent to 34,000 full-time jobs based on the median working week of 36.2 hours from the 2005 Annual Survey of Hours and Earnings ( ASHE). Applying the Scottish median hourly earnings in ASHE for personal service occupations or secretarial and administrative occupations would generate approximately £500 million.

There is a comprehensive evidence base on motivations for volunteering among the 50 and over age group. Recent research ¹⁴ identifies the following reasons:

• For some, volunteering has been a crucial role in the transition process from paid employment to retirement.
• The desire to help others, wanting to give something back and to keep active and feel useful and valued.
• The need for putting structure to free time, a way of continuing to use skills built up over the working life, and a route to learn and explore new avenues previously blocked by employment.

In terms of benefits and contributions to society, two main themes emerge from the evidence: those that have an immediate effect and those that have a deferred benefit for later generations. The main immediate effects are the integration into society and the enhanced opportunities for social interactions between the generations and the value of the volunteering activity itself. The main deferred benefit is the intergenerational aspect which contributes to keeping an organisation alive for the next generation as well as promoting an active lifestyle to younger generations. ¹⁵

As Workers

More detailed analysis of the working lives of Scotland's older population can be found in Chapter Three: Older Working Lives. There are currently 794,000 people aged 50 to state pension age in Scotland, 68.9% of whom are in employment. 72,000 people in Scotland are working beyond the state pension ages. Current estimates based on UK projections suggest that participation of our older workforce is set to rise. There are projected to be 775,000 economically active people above the age of 65 in 2020 in the UK compared to 582,000 economically active people above the age of 65 in 2005. This represents an increase of around 33%. ¹⁶

The evidence shows that working into later life should be seen as an opportunity for supporting economic growth and strengthening social inclusion. Economic analysis estimates the economic contribution of employment amongst the over 50 age group in Scotland at £15.6 billion (based on 2001 data).

Research highlights how much economic output is currently lost as a result of older people's underemployment. Not all people who want to work or who are able to work are currently employed. This presents an opportunity and untapped resource.

There are for example, currently 52,000 people aged 50 to State Pension Ages in Scotland who are currently economically inactive who would like to work and 10,000 people of post State Pension Ages and over. ¹⁷ The research undertaken by Meadows ¹⁸ estimated that if underemployed older people had been working (based on 2001 figures), they would have contributed between an extra £1.9 to £4 billion to the Scottish economy.

According to ONS estimates, the upward trend is projected to continue into the future, with men aged between 50 and 64 becoming increasingly active in the labour market over time. For women aged 50 to 59, economic activity is projected to increase at a robust rate over the period between 2006 and 2020. A similar trend is also evident for women aged 60 and over.

Analysis of UK workforce projections shows that the ageing of the population need not by definition have negative consequences for aggregate labour supply so long as the proportion of older people in work continues to increase in the years to 2021 ¹⁹ as projection estimates suggest.

The evidence highlights two potential scenarios for the UK:

Scenario 1: Modest Employment Growth (assumes employment rate is static for people aged 16-49 and over 70). For those over 50-69 the rate of employment increase by 0.25% each year. This would mean:

• An extra 300,000 older workers by 2011 and an extra 700,000 by 2021
• Total employment would rise by 1.1 million up to 2011 and then continue to rise by a further 280,000 up to 2021.
• Up to 2011 there would be an additional 0.49% of annual growth as a result of rising employment; in the decade after 2011 new employment would contribute 0.10%.
• Economic output would be £31 billion greater and output per person £500 higher.

Scenario 2: Robust Employment Growth (assumes the number of people aged 16-49 remains roughly at the level it is to-day). For people aged 50-69 the employment rate increases by 0.35% each year and for people over 70 it is static. This would mean:

• An extra 400,000 older people moving into work by 2011 and an extra one million by 2021.
• Total employment would rise by 1.4 million up to 2011 and by a further 700,000 in the following decade.
• Up to 2011 employment growth would add an extra 0.63% per year to annual growth. Economic output would be £63 billion greater and output per person would be £1,000 higher.

Source: Meadows (2004b) The Economy and Older People (2004) P36-38.

The reliability of these scenario estimates is of course open to question as labour market participation reflects a host of factors, including attitudes, pension levels, living costs and people's preferences between work and leisure. Women's participation has been on an upward trend as family size has fallen in recent decades and the rise in the State Pension Age from 60 to 65 for women between 2010 and 2020 can be expected to impact on female participation. Steps to tackle age-related discrimination in the workplace may also help to bolster labour market participation among both men and women, particularly with the introduction of a default retirement age of 65 from October 2006 and the prospect of that being reviewed in 2011 with a view to removal. When barriers to entry into employment are removed activity rates should rise.

Population ageing not only has an impact on key labour market variables such as productivity, earnings, employment, unemployment, mobility, retirement and educational participation but also on savings, consumption, housing and intergenerational transfers ²⁰.
It is anticipated for example, that new markets and services will open as the older population offers opportunities to some sectors of the economy. New generations moving into older age will develop new demands and as new products and services will be designed to take account of the need of all consumers ²¹.

As Consumers, Investors and Wealth Creators

As people get older they tend to retire from paid work and so their main source of income shifts from employment to state and private pension and other benefits and savings. Along with a shift in income source, the level of income older people receive also falls, on average.

The majority of research into the income and material resources of older people identifies that the differences in the material resources in old age are determined by earlier life experience and life course such as participation in the labour market and subsequent ability to save and invest. With increasing emphasis on private and occupational pensions, economic well-being in later life in the future will be more closely tied to work histories than in previous generations.

Figure 29 shows the rise of median weekly household income for people after state pension age and above in Scotland. In 2004/2005 the median household income for pensioner couple households was £288 after housing costs and £268 for single pensioner households after housing costs.

Figure 29: Median weekly household income for all pensioners (before and after housing costs) Scotland, 1996/7 to 2004/2005

Note: Based on equivalised net disposable household income
Source: Household below Average Income.

Wealth and Material Resources

Income does not provide a whole picture of the material resources that are available to older people. English based research shows that older people are more likely than other age groups to have built up a stock of wealth. However there is no Scottish based data on households' asset holdings wealth (such as the value of second homes, business assets, etc.), housing and pension wealth and ownership of financial assets.

The English Longitudinal Study of Ageing data ²² showed that:

• Older age groups are more likely to have wealth around state pension age. This is partly due to cohort effects as each new generation tends to retire with more wealth than the last.
• Housing makes up a large proportion of older people's wealth.
• A quarter of over 50s have over £100,000 of housing wealth. This is highest among age groups just before state pension ages.

UK Research into the material resources and well-being of older people ²³ found that certain groups of older people in the UK are socially excluded with low levels of material resources. They:

• Have a reduced consumption ability
• Are likely to have saved less or accumulated less assets such as property, savings or private pension
• Are less likely to have participated in the labour market
• Have lower levels of social resources.

"Older people with low levels of material resources or income are over-represented by women, living alone, those who are widowed, divorced or separated, in poor health, with lower education and living in deprived neighbourhoods".²⁴

Material resources and income in older age are linked to:

• Education is the strongest influence on levels of material resources in older age. Older people who had undertaken further education had greater material resources than those with primary education.
• Occupational pensions: Older people with occupational pensions were more likely to have high incomes.
• Income: securing an income stream from a private source was also associated with a higher income.
• Relationship status: Older people who are married have higher levels of material resources compared to those who are not. Single (never been married) respondents had only slightly lower levels of material sources than older people who were married, and had greater levels of material resources than those who were widowed.
• Health: poor health throughout the life course is a key determinant of lack of material resources in older age.
• Gender: There was a gendered dimension to less material resources in older age; which demonstrates that older men have higher levels of material resources available than older women. This is consistent with research that shows that women are more likely than men to have a lifelong experience of poor socio-economic conditions across the life course due to periodic disengagement with the labour market.

Consumption Patterns

The evidence shows that households headed by people in older age groups spend less on average than those in younger age groups. As people get older the absolute amount they spend falls for almost all categories of spending. Their spending patterns also change, with an increasing proportion of their spending going on necessities such as food and housing and falling proportions of the spending going on transport, recreation and culture.

There is little published Scottish data on expenditure and consumption patterns for older people however data from Family Spending report ²⁵ shows that in the UK:

• General average household weekly expenditure varies by age.
• The pattern was reversed for spending on restaurants and hotels: the proportion of spending fell from 10% of all weekly expenditure with a HRP aged less than 30 years to 6% among households with a HRP aged 75 or over.
• Expenditure on recreation and culture, as a proportion of total spending, increased from 11% among households with a HRP ages less than 30 to 16% among households with a HRP ages 65 to 74, after which the proportion fell again to 14% among those with a HRP ages 75 or over.

These changes to spending patterns across the life course are linked to changes in lifestyle. Expenses related to being in work, for example travel to work costs, will end in retirement, The different spending patterns of older people also reflects the changing way older people spend their time. ²⁶

In terms of consumption, international research produced by the OECD²⁷ indicates that as people grow older their demand on average for healthcare, housing and energy increases the most and their demand for education and motor vehicles decreases the most. Healthcare is perhaps the most obvious service sector industry for which demand will rise as the average age of the population increases, but there will be many others.

As Learners

Participation in learning activity as well as maintaining and enhancing skills is important in continuing the place of older people in the labour market. Participation in learning has wider benefits such as the contribution it makes to the health and well-being of individuals and the opportunities it brings to communities.

Later-Life Learning

Figure 30 shows the qualification mix by age group in Scotland in 2005. People in older age groups are less likely to have qualifications.

• Only 8.2% of those aged 16 to 24 have no qualifications, and 9.2% of those aged 25 to 34 compared to 23.8% of those aged 50 to 59/64. This does not necessarily mean that the young are more skilled but that they are more likely to have had their skills accredited. This means that they are better able to signal their ability in the labour market. It should also be noted that a large number in the youngest age group have yet to reach their highest qualification.
• Older age groups are less likely to be educated to degree level compared to younger age groups. 14.5% of those aged 50 to SPA have a degree level qualification compared to 26.1% of those aged 25 to 34 and 19.8% of 35 to 49 year olds.
• Within the 50 to SPA age groups, the most common highest qualification held is svq level 3 (29.1%). ²⁹ (all above)

Figure 30: Working Age Population by Highest Qualification Level Attained and Age Group, Scotland, 2005

Source: Annual Population Survey 2005 (Jan to Dec)

The higher the level of qualification held, the more likely it is to be employed. Figure 31 shows the employment rates by qualification level in 2005. The employment rate for those with qualifications at degree level is 87.1%. In contrast the employment rate for those without qualifications is 49.7%.

This trend is also prevalent amongst older age groups up to SPA:

• For those aged 50 to SPA, employment rates with qualifications at degree level is 78.9% compared to the employment rate of 48.8% who have no qualifications.
• However, for those working beyond the State Pension ages, the trend reverses. Employment rates are the highest for those with no qualifications, 29.6% compared to employment rates of 14.1% for those with a degree level qualification and 20.8% for those with a svq level 3.

Figure 31: Employment Rate by Highest Qualification Attained, Scotland, 2005

Source: Annual Population Survey 2005 (Jan to Dec)

Adult Learning

Adult learning can take the form of taught learning or non-taught learning. "Taught learning" includes enrolling in an education course, attending tuition for a qualification or to develop skills, attending an evening class etc. Whereas "non-taught learning" is very wide and includes study for a qualification without attending a taught course, supervised training while doing a job, keeping up to date with work developments without taking a course (for example, reading books or journals).

Figure 32 shows that age is negatively correlated with the likelihood of undertaking adult learning i.e. as age goes up the likelihood of learning goes down.

Figure 32: Proportion of people of working age (excl. full-time students) undertaking adult learning in the last 12 months by Age Group and Gender, Scotland, 2005

Source: Annual Population Survey 2005 (Jan to Dec)

In the academic year 2003-2004, 13955 people aged 50 and over were in further or higher education. This is 5% of the total number of students in Scotland.

Training Activity

In 2005 the proportion of people aged 16 to SPA in employment receiving job-related training in the last 3 months was 30.1%.

Figure 33: Proportion of people of working age in employment receiving job related training in the last 3 months by Age Group and Gender, Scotland, 2005

Source: Annual Population Survey 2005 (Jan to Dec)

Generally, the younger age groups are more likely to receive work related training.

Figure 33 shows.

• 24.5% of people aged 50 to SPA in employment received job related training compared to 33.1% of those aged 25 to 34.
• This is more prevalent for men, where 34.6% of 16 to 24 year olds received training compared to 20.9% of 50 to 64 year olds. Training programmes are frequently targeted at the youngest age group. Age has less of an affect on the incidence of training for women.

The Performance and Innovation Unit document highlighted that uneven access to lifelong learning is one of the key reasons that prevent people from making a full contribution to working life as they get older. It states that, the need for access to appropriate training opportunities for older people, both for those in employment and for those seeking employment, will increase in the future. ³⁰

The lack of training received by older workers is perceived to be a barrier to extending and sustaining working lives. Recent research suggests that there are five main barriers to training for older people. These include:

• A real and/or perceived decline with age in the capacity to learn
• A public policy environment that has encouraged early retirement which may make training uneconomic for employers.
• Lack of local provision and/or lack of relevant and interesting courses
• Discrimination by employers on the basis of the assumed work attitudes of older employees.

A survey of people aged 50 ³¹ and over from s sample of the National Adult Learning Survey undertaken by the Department for Education and Employment into learning in later life recognised that older people will need to continually update and learn new skills if they are to remain in the labour market. It also identified participation in learning as having much wider benefits such as contributing to the health and social well-being of individuals and communities:

• People in later life learning were more likely to be in work than in full-time retirement.
• IT learning was most common, followed by work-related learning.
• The most common reasons for learning were intellectual, wanting to increase knowledge, keep active and enjoy the challenge of learning new things.
• Reasons for not learning were varied ranging from a lack of time or feeling too old to learn. Having a disability or health problem was also identified as a main barrier.
• A large majority of those surveyed (80%) reported learning having a positive impact in at least one of the following; their enjoyment of life, their self-confidence, ability to cope with everyday life and satisfaction with other areas of their life.
• Other benefits of later life learning included: broadening horizons; meeting people; social interaction; keeping active; and being better able to deal with other people.

Opportunity

Connected Older People: Digital Inclusion

Half of all adults now use the internet in Scotland and use is steadily increasing. This increase is particularly marked within older age groups.

Figure 34: Trend in Household Access to the Internet by Age

Source: Scottish Household Survey 1999-2005

Recent Scottish Household Survey data ³² in Figure 34, shows that:

• Internet use is increasing in all age groups but significantly more in older age groups. For example, internet use in households where the highest income householder is in the 50-59 age group has increased from 9% in 1999 to 39% in 2005. The largest increase is in the 75 and over age group with only 1% of that age group using the internet in 1999, rising 9 fold to 9% in 2005.
• Older users of the internet are more likely to be in high income households. For example, 5% of users aged 75 and over have a household income of £6001-£10000 compared to 24% with an income of £20001+.
• Internet use amongst the older population increases with rurality. In large urban areas 26% of people aged 60 to 64 use the internet compared to 39% of the same age group in remote rural areas.

The evidence predicts that the increasing digital inclusion of older age groups will increasingly enable older people to organise themselves socially and to maintain contacts with friends and relatives and order goods and services online. ³³

Connected Older People: Social Networks

A variety of evidence exists on the extent to which older people contribute towards their communities through social networks, community planning and civic participation.

A Joseph Rowntree report ³⁴ found that older people are "central pillars" of active communities, which reflects the extent to which their values of mutuality led them to support one another and build social capital for all the community. This is echoed in survey data which illustrates that older people are more likely to feel more involved in their community. ³⁵

• 28% of those aged 65 and over feel they are involved 'a great deal' or 'a fair amount' with their community.

Community Participation

A study ³⁶ has shown that older people in Scotland contribute to the community planning process via mechanisms such as: older people's forums; user panels; an Older People's Assembly and older persons' service planning groups. The study showed that the involvement of older people (particularly people aged 65 and over) included:

• ensuring access to services
• supporting inclusion in the community through access to mainstreamed facilities
• supporting older people to set an agenda
• undertaking consultation on topics

Good involvement was characterised as being proactive, a partnership, of relevance to older people's lives and with clearly defined outcomes and expectation. Barriers to further involvement included negative attitudes towards older people, older people's low expectations of the effectiveness of involvement and a variety of organisational barriers.

Older people also contribute to society by participation in leisure activities such as sporting and physical activities as well as attendance at arts and cultural events. People who have been active during their working life are likely to remain active after retirement and beyond. ³⁷

UK evidence shows that the levels of participation in sporting and physical activities by older people depend to a large extent on their interest and involvement when they were younger. There is a lack of Scottish data on the participation of older people in sports and cultural events but it is hoped that this will change with the inclusion of the sports and culture module in the Scottish Household Survey from 2007.

The evidence shows that in the UK, participation in sport in general, decreases with age:

• In 2002/3, 60% of people aged 45-59 had taken part in sport or physical activity- twice the proportion of those who participated in the 70 and over age group. It is suggested that this drop in participation may be due to the lower health and mobility status of older age groups. ³⁷
• The highest levels of participation were in walking, although participation levels declined with age. 40% of those aged 45-59 had walked two miles or more at one stretch for recreational purpose in the four weeks before the survey compared to 22% of people over 70. ³⁸
• A study showed that, people aged 55 to 64 were more likely than other older age groups to have gone to musicals, craft exhibitions, visual arts exhibitions, classical music and opera. ³⁹

Civic engagement

One formal aspect of civic engagement in which older people are more active is voting in elections. In the 2001 General Election, those aged 65 to 74 year olds were the likeliest of any age range to have voted (87%). ⁴⁰ This was double the rate of those aged 20 to 24 years of age.

This is also reflected in Scottish elections which also show considerable variation with age with just 35% of those aged 18 to 24 years ⁴¹ saying they voted in the Scottish Parliament elections in May 2003, compared with 79% of those aged 60 years or over.

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