10 February 2004 - Small firms tapping into rich resource of older workers
Smaller firms are taking the lead in recognising the wealth of talent and experience that older workers offer, Secretary of State for Work and Pensions Andrew Smith said today.
Speaking at Age Concern’s The Age Agenda conference today he said:
“As Age Concern’s own research shows, the myth that older people are less effective workers is exactly that, a myth.
“We know that many people nearing state pension age do not necessarily want to stop working completely – instead they want to choose how and when they stop working. Not only for the obvious financial benefits, but because older workers are more likely to enjoy high levels of job satisfaction.
“Employers tell us that including older people in their team not only makes for a more motivated, reliable and flexible workforce, it makes good business sense too.
“Smaller employers are acting as trailblazers in the labour market. Research shows that workers over state pension age are more likely to be working for smaller firms. Larger companies would do well to learn from their example in making more of what older employees have to offer.”
As one small employer, Stanair Industrial Door Services, puts it:
“We retain our workforce well into their later years and retrain them. This allows us to keep and use their skills, and it gives us a tremendous bank of knowledge and experience. There is no official retirement age – each case is treated individually, and the decision to retire is mutually agreed.”
Andrew Smith went on to set out what the Government is doing to promote the employment of older workers.
“We are looking to open doors for older workers, not close them. Giving people the option to defer their state pension and receive either an enhanced pension or a lump sum is one incentive to keep that door open.
“Outlawing age discrimination, offering practical support to help people on incapacity benefits back into work, and shattering stereotypes through our Age Positive campaign all show we are serious about developing a more age diverse workforce.
“We have much to be proud of already. The number of people aged 50 or over in work has increased by over a million in 1997. But we all need to work to change attitudes to planning for retirement and open up new opportunities for working longer.”
Alongside the initiatives for extending working lives, the Government also needs to put in place the right framework:
“The forthcoming Pensions Bill is a major step forward in our drive to improve pension security and restore confidence in the pension system. The Bill will set up a Pension Protection Fund – so that as we move forward people can be much surer that a pension promised is a pension honoured.
“Layers of regulations surround pensions. This Bill will cut through this complexity – making it easier and simpler for firms to run pensions, helping cut costs and increasing choices for those who want to work for longer. Underpinning all this the Bill will also establish a new, proactive pensions regulator to focus on tackling fraud, bad governance and poor administration.
“And last week we published our proposals to help people take control of their retirement planning, including regular ‘pension health check-ups’”.
Notes for editors
- Individuals want to work longer:
- Many people nearing State Pension Age do not necessarily want to stop working completely – instead want to choose how and when they stop working.
- A third of women in the workforce aged 50 and over plan to retire after State Pension Age.
- Almost a third of the workforce, both men and women, aged 50–69 want to retire gradually by reducing their working hours prior to fully retiring.
Findings taken from Factors Affecting the Labour Market Participation of Older People, DWP Nov 2003.
- Employer size was important with workers over SPA twice as likely as other age groups to be employed in companies with 1–10 staff and far less likely to be employed in organisations with over 50 staff – finding taken from Working after State Pension Age: Quantitative Analysis’ DWP Research Report Series (no. 182).
- As set out in the Government command paper “Working and Saving for retirement Action on Occupational Pensions “ the Government remains committed to maintaining the State Pension Age at 65, but has set out a series of measures to increase people’s choices about when they retire: http://www.dwp.gov.uk/publications/dwp/2004/inf-choice/index.asp
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