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CHAPTER 6: WORK
Introduction
Changing working patterns, the proposed increase in retirement age and problems with underperforming pension schemes mean that the traditional idea of retirement is changing. While some people take early retirement, others choose to work on, either in the same occupation or by changing to another, perhaps part-time, job. The consultation document posed a series of questions on work, retirement and income.
6.1 WHAT STOPS PEOPLE WORKING?
The consultation asked, "Thinking about older people who want to keep working, what stops people from working for as long as they want to?" Thirty-one percent of consultees did not comment on this question. The 4 key issues cited by consultees are shown in chart 6.1.
Chart 6.1
Factors stopping people from working as long as they want to
6.1.1 Health
Over a third (34%) of consultees cited poor health or frailty as the main reason people are unable to continue to work. Highest proportions of consultees in the 50-64 age group (43%) and those from the Asian community (58%) identified this barrier.
6.1.2 Discrimination
Age discrimination within organisations was commented on by 21% of consultees and this included 28% of organisations. Two percent of consultees specifically mentioned the culture within organisations, while 6% referred in general to attitudes to older people. Two percent commented that employers saw older people as more expensive to employ. One local authority highlighted the importance of,
"Overcoming age discrimination in recruitment and selection, training and awareness raising to advise employers of legal obligations and challenge stereotypes of older workers."
One public body noted the move on the part of some large employers (B&Q and Marks & Spencer were cited specifically) in employing older people. They noted that with an increasingly ageing population, more employers need to be encouraged to adopt different attitudes towards recruiting older individuals, particularly as there will be an associated shortfall in potential younger employees in the future. However, this organisation also noted that an increase in the numbers of older people employed could have a negative impact on the volunteering sector that relies heavily on older people.
6.1.3 Flexibility
The need for flexible working arrangements and retirement age featured in 21% of responses. Eighteen percent of consultees felt that rigid retirement ages were the main barrier to continuing in employment and, again, this figure was highest amongst organisations (30%). A voluntary organisation commented,
"Whilst we agree that there should be a set age at which every British citizen is eligible to receive a state pension, it is imperative that politicians and policy makers (and the media where it is possible to influence it) do not inadvertently set in the minds of the public and employers an equivalent set retirement age. Whilst no one should be forced to work beyond the age at which they are entitled to receive a pension (including being forced to work due to pension poverty), everyone should have the option to choose to continue to work if they so desire and are able. The Executive, in its own use of language, could do much to model a positive culture change in this area."
6.1.4 Personal Circumstances
Personal circumstances were also cited, with 10% of consultees commenting. This included 5% who felt people would no longer be able to work if they became a carer and 2% who cited family responsibilities. Four percent commented on personal circumstances in general.
Other reasons, made by smaller numbers of consultees, included:
- Little or no financial gain due to taxation (6%);
- Outdated skills or new technology (4%);
- Lack of flexible working patterns (4%);
- Lack of motivation (3%);
- Decreased work performance (3%);
- Feeling of taking jobs from younger people (3%);
- Poor self image (2%);
- Changes to regulations (2%)
- Pressure or stress (2%).
6.2 HELP TO CONTINUE IN EMPLOYMENT
The consultation paper asked, " What help might older people need if they want to continue working?" A number of key issues were cited by consultees and these are shown in chart 6.2 below.
Thirty percent of respondents did not comment on this question. Chart 6.2 summarises comments made on help for continuing in employment.
Chart 6.2
Summary of help older people might need if they want to continue working
6.2.1 Working Arrangements
When asked for ways in which older people could be helped to continue in employment, one suggestion emerged far ahead of others. Overall, 45% of all consultees identified the need for some sort of flexibility or working arrangements for older people remaining in employment.
Just over one in three (34%) consultees commented on the need for flexible working patterns specifically and this figure was highest among organisations (44%). In addition, 8% noted that work should be tailored to the skills of the individual as they age and 3% highlighted the option of working from home. Seven percent felt that retirement should be phased over a period of time.
One charity reported that,
"Flexible working without loss of status or acknowledgement of achievement may enable the older person to move between demanding responsibilities to more inactive work. But the respondents felt that this could not happen without generous tax free limits on earnings for the over 50's thus enabling them to be more creative in saving for their own retirement."
Comments on the need for flexible working arrangements were highest among those aged 50-64 (53%); only 28% of the under 50 age group made similar comments.
6.2.2 Finance
Financial incentives, in the form of lower taxes or increased benefits, were mentioned by 12% of consultees while 4% commented on financial incentives to encourage employers to retain or employ older people.
6.2.3 Training
Thirteen percent identified the need for better access to training and this included 19% of organisations. There were also one or two references to encourage more lifelong learning and positive attitudes towards lifelong learning.
6.2.4 Other
Nine percent felt that older people simply needed to be encouraged to remain in employment and this figure rose to 16% among those aged 50-64. A further 8% suggested that older people should be able to move to a less stressful job.
The possibility of providing easily accessible sources of information on employment opportunities was raised by 5% of consultees.
Four percent suggested looking at ways to improve health and fitness, and among the substantive responses there was support for better occupational health services, with one local authority commenting, "better in-work support and additional services such as occupational health services can play an important role in allowing older people to stay in employment." Two percent of consultees mentioned the need for easier access for disabled people, including access to mobility aids.
6.3 INCOME IN RETIREMENT
"What do you think can be done to help people build up a better income for when they retire?" Just over half (55%) of the consultees commented on this question. Chart 6.3 notes the key references made by consultees and these referred to a need to:
- Have better pensions;
- Save more;
- Have access to financial advice;
- Increased pension contributions.
Chart 6.3
Summary of help needed for people to build a better income for when they retire
6.3.1 Better Pensions
Overall, 30% of consultees made comments regarding pensions and responses varied between 41% amongst those aged 50-64 and 15% of those aged under 50.
The key suggestion, made by 14% of consultees, was for a higher state pension, possibly linked to earnings, and the highest proportion of those citing this were in the 50-64 age group (24%).
Comments also included the need for pensions to be "safe", or the need to resolve pension shortfalls; 1% thought that the government should underwrite private pension schemes.
Eleven percent felt there should be less tax or no tax paid on pensions including 15% of organisations. Two percent wanted to see an end to means-tested benefits. A health organisation commented,
"The recent new state pension scheme proposed by the government goes some way to help people build up a better income for retirement, but feel an occupational pension that can be carried from one job to another is preferable to a personal pension. Young people will not see the point of personally saving for old age; contributions have to be deducted at source from income."
6.3.2 Saving
One in five (20%) consultees identified the need to save, although this figure fell to 9% among the under 50 age group. Thirteen percent of consultees wanted to see saving encouraged. Incentives to save were recommended by 5%, and 1% wanted to see banks offering higher ISAs for older people. Two percent felt that people should design an appropriate savings plan.
6.3.3 Financial Advice
A range of opinions on provision of financial advice were given by 12% of consultees. Ten percent wanted to see better provision of information on the range of options available when planning for retirement, with a further 1% wanting financial advice to be provided free of charge. In addition, 1% wanted advice on budgeting.
Problems in accessing benefits were raised by one charity who suggested,
"For those who do have to give up work, or move to a reduced income, the support of the benefits system is extremely important. This can often be people's first experience of applying for benefits and many find it overly complex and stressful. Too many older people with cancer are not claiming the benefits to which they're entitled and the Executive should look at supporting specialist benefits and financial advice schemes, such as those run jointly by the respondent and CABs."
Fourteen of the substantive responses mentioned the need for advice on benefits.
6.3.4 Increased Pension Contributions
While there were some calls for better pensions, increased pension contributions were also cited by 9% of consultees and this included 5% who thought that contributions to private pension schemes should be compulsory and 2% who wanted to see a longer contribution period. The possibility of employers contributing extra pension in lieu of pay rises or bonuses was raised by 2% of consultees.
6.4 COMBINING WORK AND OTHER ACTIVITIES
The consultation paper asked, "What help might people need to combine work with other things, such as caring, looking after children or volunteering?"
Only 33% of consultees commented on what could be done to help combine work with other activities such as caring, looking after children or volunteering. The two key themes to emerge were support for carers and flexible working opportunities.
6.4.1 Support for Carers
Almost a quarter (24%) of consultees raised the issue of support for carers and this was higher among female (26%) than male (16%) consultees. In terms of age, this was also highest among those (28%) in the 50-64 age range, compared to 25% in those over 65 and only 10% among those up to 50.
Eight percent of consultees made general comments on the need for support and 12% voiced the need for adequate financial reward for carers, with comments that allowances for carers should continue after retirement age. One voluntary organisation wanted to see,
"A realistic carers allowance for those who work part-time due to caring responsibilities. National Insurance contributions paid for those who take time off to be carers. A system similar to that of Foster Carers with carers being paid."
The role of older people as providing care for children was also referred to, with a need for more nurseries or crèches being raised by 6%.
Extended respite care facilities were seen as important by 4% of consultees.
6.4.2 Flexible Working
Twelve percent of consultees again raised the need for more flexible working hours. Of these, 10% were general comments, while 3% specified part-time hours and 1% wanted more job-sharing opportunities.
6.5 WHAT ELSE COULD BE DONE?
Only 7% of consultees gave other suggestions and these included:
- Reiteration of the need for age discrimination legislation (2%);
- The need for positive media portrayal of older people to change employer attitudes (2%);
- Reduced bureaucracy (1%);
- The need to raise awareness among employers of the untapped resource older workers represent (1%);
- The need for more input from older people in policy and planning (1%).
In summary,
- Poor health, age discrimination and rigid retirement ages were seen as the main barriers to older people who want to continue in employment.
- The main areas identified where help could be offered were:
- - the provision of flexible working arrangements;
- - lower taxes or increased benefits;
- - opportunities to retrain.
- Higher pensions and the need to encourage saving for retirement were seen as key to providing sufficient income in retirement. There was also an identified need for better information to help with financial planning.
- There were also suggestions for better support for carers and this included payment or benefits and respite care.
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