By 2030, more than half of the UK workforce will be aged 50 or older, contributing an estimated £730 billion to the economy. Against this backdrop of increasing longevity, a new study from insurance company Canada Life has found that almost a third (30%) of UK employers recognise that an ageing workforce is a risk to their business over the next five years.
Canada Life surveyed 600 employers and more than 3,200 members of the public for the report, Building longevity-ready workplaces in the UK. It reveals the challenges and impact that increased longevity will have on the world of work, and explores what government, businesses and individuals can do to adapt to longer working lives and harness the value that different generations bring to the workplace.
More than eight out of 10 (83%) UK employers believe people will need to work longer to support themselves in later life. However, most UK businesses are not yet acting to capitalise on the experience and skills that older employees bring, with only one in eight (12%) private sector employers future-proofing their businesses by having a strategy in place to recruit and retain older workers.
However, whilst holistic longevity strategies may not yet be widespread, many employers have at least one supportive measure in place, such as promoting a good work life balance (41%), valuing skills and expertise alongside formal qualifications (29%) and supporting flexible working for those with caring responsibilities (25%).
“The longevity megatrend is shaping lives across the UK and beyond, transforming the makeup of our population and the way we live and work,” said Lindsey Rix-Broom, Incoming CEO Europe, Great-West Lifeco and CEO Canada Life UK. “The implications are clear: workplaces must adapt, but this isn't something that businesses can solve alone. It demands collective solutions that harness the potential of people of all ages.”
Employers acknowledge that they have an important role to play in helping employees and workplaces adapt to longevity. This includes investing in skills development throughout employees’ lives (72%), being mindful of how motivations shift with age (70%) and by thinking differently about workplace structures (65%). However, employers also feel that preparing for longevity is a collective responsibility, with three-quarters (73%) believing the government will need to take a more active role in helping people work for longer.
The research also highlights a disconnect between employers’ views on working in later life and those of the working population, suggesting that there’s scope for employers to better understand the needs of their workforce at different stages of their career journeys. For example, more than half (55%) of employers believe employees who leave the workforce early do so because they physically can’t do the work, whereas only 18% of employees cite this as their motivation.
With almost eight out of 10 UK adults (79%) believing that they will have to work for longer, the report argues that increasing longevity is necessitating a shift in the traditional structures of lives and work, requiring us to adapt beyond the accepted model of learn, work and retire towards something more agile. Four out of 10 (42%) UK adults also agreed it was likely that they would need to rethink their retirement plans by retraining or pursuing multiple careers, should living longer become the norm.
The prospect of living longer and working in later life inevitably raises legitimate concerns regarding health and wellbeing. However, it is clear that the UK public sees work as an important component of staying healthy, fulfilled and connected to others. Only a quarter (25%) of individuals aged 65 or over who are still working do so because it’s a financial necessity versus approximately four out of 10 (42%) who are motivated to stay mentally and physically active.
Businesses also have a critical role to play in supporting the physical and mental wellbeing of their employees. However, only four out of 10 (38%) employers regard employee health and wellbeing as a high priority, and businesses do not typically recognise the increasing value that employees place in benefits such as critical illness cover and income protection as they move through their working lives. Positively, however, over two thirds (68%) of employers recognise that they have an increasingly important role in providing services and benefits that help enable people to stay in work for longer.
Lindsey Rix-Broom concludes: “It is clear from our research that building longevity-ready workplaces requires collaboration and meaningful dialogue between individuals, employers, advisers and policymakers. Getting this right is not only a practical necessity – it is a moral imperative and a pathway to unlocking the growth and potential of the UK’s workforce and, by extension, the wider economy.”