Around 3 million of over 50s in the UK have returned to work this year after previously being retired, with 14% looking for part time work.
There’s been a growing trend amongst the older generation where we have seen more over 50s re-entering the workforce, some of the reasons being down to the cost of living crisis along with their pensions not meeting the rise in living costs.
Those who are retired are also choosing to re-enter the workforce as a form of mental stimulation and to socialise with other people, as daily social interactions for many become limited in retirement.
Outside of the UK, the employment rate for individuals aged 65 and older in Japan reached 25.2% in 2022, which is notably higher than in other countries such as the United States (18.6%) and the United Kingdom (10.9%). Over half of those aged 65 to 69 (50.8%) in Japan were employed in 2022.
Recent research found by the Royal London highlighted how around 150,000 people in the UK were on less than £100 per week with their pensions and one in five aged 66 and over were relying only on their state pension with no other sources of income.
Matthew Vohs, CEO of O50C, has noticed a career change for those of this generation, with more coming out of retirement to join the workforce again. He’s found it is partly with those experiencing financial strains, but also that many people of this age group are looking to completely change their careers and step into something new.
He said: “A common theme we are seeing here at O50C is that those who are experienced candidates and have a wealth of experience in their chosen field are choosing a complete career change. Many of our candidates have experienced redundancies, burn out or feeling unsatisfied with their job roles, on top of needing to push back their retirement in order to have an extra bit of income to add to their pension. There have been many who would like to stay in their original career / sector, yet since the COVID-19 pandemic they have found it harder to continue in that line of work.
“What a lot of employers and those in HR need to be aware of is how many of these candidates are open to looking for jobs that step away from the corporate culture and office jobs. We need employers to be more welcoming to the older workforce who are looking to take on other roles, especially non office based jobs as well.
“As more of this generation come out of retirement to continue to work, means more employers need to have strategies in place to help in retaining these employees and offering them support.”
Matthew has shared the key strategies each HR department should consider when encouraging over 50s to join their workplace:
- Offering more flexible and part time roles
Matthew said: “In order to attract those who are over 50 into a new role would be to offer more part time roles and flexibility for their employees. Research by gov.uk stated that women aged 50 to 64 years are considerably more likely than men of the same age to be in part-time employment, with around three in ten (27.0%) women aged 50 to 64 years in part time employment in 2024. In 2023, the UK had 3.6 million people aged 50 and over who were working part time. There is an increase in those who are looking to return to work and are searching for more part time roles rather than full time employment to help achieve a better work life balance or to ease caring responsibilities.
“There are many people of this age range who would like to go back to their previous roles, but on a part time basis. This would be beneficial for businesses to offer positions that aren’t all full-time as well as it is more affordable for the employer and they are still able to attract and retain those with experience in their industry.
“That’s why employers need to consider offering part time work and flexibility for semi-retired workers, as it could help the employer to fill positions they need whilst also retaining their employees for longer.”
- Encouraging career development opportunities
“63% of organisations do not have specific recruitment, retention, or training initiatives for targeted groups in place, according to the British Chambers of Commerce. We have an issue of their being a major skills shortage across different industries in the UK. This is why employers should have training programmes in place to help not just the younger generation but also the older generation to learn new skills and to fill certain job roles.
“If employees are able to put budgets aside to invest in training resources for those aged 50 and over, it could open up the doors for many who are looking to change careers and to develop their skills. It could help businesses to thrive if they work with those in this age bracket who want to learn and could fill positions which are struggling to hire.
“Our hiring solution at O50C enables us to assess candidates through comprehensive interviews and research to ensure employers are hiring individuals who have relevant experience, but who also might be looking for career progression opportunities. If employers have the right incentives in place to hire the right candidates, it means they’re more likely to have a stable workforce, a higher retention of staff and colleagues staying with the business for longer.”
- Host retirement planning workshops
“Retirement planning workshops are a great way for companies to provide information and support to their employees who are getting closer to retiring and can share advice on how to plan financially for when they retire. However, work for many doesn’t have to stop there, it’s a good opportunity for employers to continue to provide career progression options for those who are still looking to work and learn new skills.
“It’s a great incentive for those aged 50 and over to know their employees are still looking to work with them and encourage them to stay with the company, especially if the company has the budget to put towards further training and investment in their employees.
“We must make sure we are actively promoting age diversity and have strategies in the workplace so that employers can tap into the unique strengths of individuals across all age ranges, fostering a collaborative and inclusive work environment.”
