The rise of ‘retired’ workers

The rise of ‘retired’ workers

Emma Simon looks at why there are now more than a million people working past the age of 65 .

By Emma Simon

7:00AM BST 16 Jun 2013

It isn’t just the younger generation who need to face up to the reality of working past their pension age. Figures released by the Office of National Statistics last week showed that there were now more than one million people in the workforce aged 65 or over.

This is the highest number since the ONS started collating this data, back in 1971, although pension experts said that this number is likely to rise significantly over the next few decades.

There are a number of reasons behind this change in working patterns. Undoubtedly one of the biggest drivers has been financial need.The demise of the guaranteed company pension scheme has left many workers with far smaller pensions. At the same time a decade or poor investment returns and the collapse in annuity rates in recent years, means many are retiring with far less in their pension pot than they hoped – which thanks to increased longevity have to last far longer.

By continuing to work they can either supplement a more meagre pension, or simply delay buying an annuity, or taking money from their pension fund – which should mean a bigger pension further down the line.

An increasing number of these “silver workers” are self-employed. Craig Palfrey of Penguin Wealth, a financial advisory firm said that pensions problems were likely to be more acute for those who had been self-employed during their working lives, as they may not have had access to more generous company pensions.

But there are also more positive factors boosting the numbers of older workers.

The simple fact is that with better health and a “younger” outlook today’s 60 and 70-year olds don’t feel they are ready for the pipe and slippers just yet.

Many of these workers have left more traditional employment opt to be self-employed. Mr Palfrey added: “In many cases newly retired people simply get bored. Some may take up self-employed consultancy work. The internet and the growth of home working has certainly made it far easy for people to continue to work on a part-time basis and supplement their retirement incomes.”

Younger workers could have lots to learn from this gradual transition from full-time work, to part-time work, to full-time retirement.

Much has been written about the “pensions gap” and the fact that those in their 30s, 40s and 50s today have far smaller pensions. Many will be forced to work longer, thanks to gradual increase on the state pension age from 65 (or 61 in the case of women) to 67.

And for those wondering how they are even going to save enough to fund a decent standard of living in retirement working later, even on a part-time basis, may be a more realistic way to plug the gap, rather than saving more now.

COLIN OMAND, 65, chose to return to work in retirement because he was bored, not because he was short of money.

Currently working on a temporary basis in IT support at Aberdeen Royal Infirmary, Mr Omand said he didn’t feel ready for retirement.

His previous job as an engineer for a cash machine firm involved long hours, so when it offered him a severance package he accepted it.

But he said he felt lost when he suddenly stopped working, particularly as his wife still had another two years left at work. He said: “When you know you’re ready to stop working, you just know. But I didn’t feel ready.

“I enjoy my current job . I fancied a change from working full-time .” He said he was unsure how long he would continue working.

ALBERT BILLINGTON, 90, started working at the age of 14, when he began a seven-year apprenticeship in the print trade.

He worked as a typesetter on a number of national newspapers in Fleet Street before retiring.

But his retirement hasn’t meant a life of gardening. Instead he has been working in B&Q, on a part-time basis, for the past 23 years.

He said his wife initially volunteered him for a job after the couple were approached while shopping at B&Q.

He started as a car park assistant and now works as a “greeter” in the company’s Longwell Green store in Bristol.

He said he enjoyed the social side of the job and was a keen DIY enthusiast. Alan Lamberm, the store manager, said: “To be still working at 90 is no mean feat and we’re proud to have him in our team.”