Fuller Working Lives –

Introducing the Business Champion for Older Workers

Monday 14th July 2014

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Welcome

Baroness Sally GreengrossChief Executive

ILC-UK

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Welcome

John GodfreyGroup Communications Director

Legal & General

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Steve Webb MPMinister for Pensions

Department for Work and Pensions

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Dr Ros AltmannBusiness Champion for Older Workers

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OLDER WORKERS’ BUSINESS CHAMPION

Dr Ros AltmannILC-UK Event

Legal and General

Dr. Ros Altmann, CBE

14 July 2014

@rosaltmann

TIME TO REVOLUTIONISE RETIREMENT

Longer, healthier lives leave retirement out of date

By 2020 will be 3,700,000 more people aged 50 – SPA

But 700,000 fewer in age group 16 – 49

Immigration adds <200,000 a year

Over 50s will be c. 1/3 of working age population

Employers need to retain experience and skills

SOMETHING WENT WRONG

1950s, each one year of retirement funded by 5 years of

work

Now, each one year of retirement funded by under 2

years work

Combination of more work and more savings offers a

solution

Rethinking retirement – a process not an event

People still have so much to offer for themselves and

others

Healthier and longer lives, less physical demands of

work

PENSIONS DETACHED FROM RETIREMENT

IT’S ALREADY BEGINNING

• 71% of workers say they will consider working past state

pension age, to achieve a higher retirement income

• Only 8% not willing to work on, even if struggle financially

• Only 20% believe they’re saving enough for retirement

• Source: MetLife Survey

LET’S CHANGE THE NARRATIVE

Not so much challenges or problems – more opportunities and good news

Framework for Action phone-ins explained financial, social and health elements

Government has abolished Default Retirement Age

Introduced right to flexible working for all

Now we need to change attitudes more widely

Social revolution

EMPLOYERS HAVE A VITAL ROLE

I want to work with businesses to hear what they say about older workforce

Employers have an important role to play Not just contributing to pensions BUT ALSO making the most of the

skills of older staff

Key drivers of highest pensioner income = good pensions or staying at work

top 20% of pensioner couples: 37% of income from earnings and 36% from pensions

Working longer is part of planning for higher later life income

Number of pensioners in work has nearly doubled 753,000 in 1993, 1.4 million in 2011, 63% working part-time

MCDONALD’S

David Fairhurst – Chief People Officer “Changing demographics in the workplace mean that later life workers are now the fastest growing age group in the labour market. Yet despite the growing numbers of mature workers, their contribution to business and the wider economy often goes unsung. It might surprise people to learn that at McDonald’s we employ over 1,000 people aged 60 and above. These employees play an important role in our business and, as the research shows, they make a huge impact on customer satisfaction.”

AT BROWN COACHES

Director – Ewen Macleod “They’re like gold-dust. Their experience and flexibility would be hard and costly to replace. At the same time we do also have a 16 year old apprentice mechanic who is shaping up well and is very keen.

. It’s better for my business to keep our older workers, many working flexibly, than to recruit replacements. It’s all about long-term survival, even more so in the current climate.”

OLDER WORKERS CHAMPION

Engage with business leaders, HR professionals

Engage with individuals to help embrace opportunities

Important to help people recognise new realities

Understand and change attitudes for the benefit of all

BENEFITS TO BUSINESS Retaining knowledge, firm-specific skills and experience

Avoid skill shortages

Maintain productivity

Ability to mentor younger employees

Customers often want age-diverse workforce

BENEFITS TO INDIVIDUALS

Financial, physical, wellbeing

Retraining? Gap years then study? New start in your 50s – not the end!

Extra years worked Extra income (average workers, cumulative)

Increase in pension fund (approx.)

1 £25,000 £4,500 (+4%)

2 £50,000 £9.500 (+8%)

3 £75,000 £14,000 (+13%)

BENEFITS TO SOCIETY

Demographics – older generations can drive boost to growth

Higher output and national income

Increased national wellbeing

Reduced benefit spending

Higher long-term growth

More older workers brings more jobs for the young

CONCLUSIONS

Help champion older workers’ skills – retention, retraining and

recruitment

So much going on but needs to be brought together

Not about forcing people to work longer

Enabling, facilitating, encouraging

Win-win for individuals, business and society as a whole

THANKS FOR LISTENING…

www.pensionsandsavings.com

@rosaltmann

www.rosaltmann.com

Q&A for the Minister and Champion

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Mario AmbrosiHead of Public Affairs

Anchor

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Kim TideyActivity Coordinator at Greenacres Care Home

Anchor

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Panel Discussion

Mark Beatson, Chief Executive, CIPD

Rachael Saunders, Acting Director Age Intergenerational Workplaces, BitC

Alastair Clegg, CEO, PRIME

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Open Discussion

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