Government calls for more retraining opportunities for older workers

A government report has called for retraining opportunities for people aged 45 and over and for people approaching retirement age.

The report called Fuller Working Lives: A Partnership Approach has said that companies can also do more to plug the gap in the recruitment of older employees, given the ageing demographic of the country as people live longer.

In light of this, the government said it has asked John Cridland, the former director-general of the Confederation of British Industry, to carry out an independent review of the state pension age, with his report due in the Spring.

The report called for more apprenticeships called an “all age programme”. It said that in the 2015/16 financial year over 57,700, or 1.3%, of those starting an apprenticeship were aged 45-59 and 3,500 were 60 years and over.

According to the Office for National Statistics, adding a year to people’s working lives could add 1% to Britain’s gross domestic product (GDP) per year, the equivalent of £18bn to the economy in 2015.

The report found that by delaying retirement until 65 instead of 55, a male average earner could have £280,000 extra income and might increase his pension pot by 60%.

It said that in order to meet future employment demand companies need to develop skills in recruiting, retaining and retraining older workers.

The report cited Aviva and Mercer as examples of offering opportunities to attract and retain older workers. Mercer has begun to by publicly declare flexible working options for all suitable roles, started a reverse mentoring programme, opened up rotational working opportunities to all ages and implemented a support for working carers programme.

While Aviva has launched a pilot in Bristol supporting carers in the workforce with a view to expanding this throughout the company, launching mid-career reviews for the over-50s and refreshing its apprenticeships programme.

The government laid out five actions to support older workers, the first being to to introduce legislation to support Fuller Working Lives, including removal of the default retirement age, reform of the state pension, extending the right to request flexible working to all employees who have six months continuous service with their employer, and reviewing the state pension age.

The second was to develop an evidence based case for action by collaborating with academics and researchers.

Thirdly, to support those who need more help such as women, carers, people with long-term health conditions and disabilities, and black and minority ethnic groups.

The fourth action was to reform the adult skills system with technical education, and provide better options for those already in the workforce by bringing together employers to produce new qualifications.

And lastly, to improve the Jobcentre Plus offer for older workers and improve the information available to older workers on the government website.

Tom McPhail, head of retirement policy at Hargreaves Lansdown, welcomed today's announcement by the government but was concerned about whether different government departments were working together.

Former Chancellor George Osborne introduced new pension freedoms when he announced people would no longer be required to buy an annuity at retirement.

McPhail said: “The decisions we make as individuals about how much we save, how long we save for and how we invest our money will determine what kind of retirement we enjoy. The role of employers and government lies in making that as easy as possible.

“We welcome today’s announcement however we are currently very concerned about whether the government can deliver a joined-up savings strategy which works for ordinary savers. It appears that at times some government departments are pursuing policies which actively work in opposition to each other. The reduction in the amount someone can pay in after flexibly accessing their pension is a policy which does nothing to enhance longer working lives.”