viewpointOne in five over 45s fears unemployment limbo

The latest Government plans to increase the retirement age has left workers in the 45-54 age bracket fearful of being stranded in unemployment limbo. The age bracket, dubbed the ‘fearful forties’ by experts, represents a rapidly growing proportion of the UK workforce - so much so that, by 2031, more of the working population will be aged 40 and above than those aged below 40.

This rise in workers aged 40+ brings with it its own concerns. One in five over 45s fear they will lose their job in the next year; combine this with broken dreams of a not too distant comfortable retirement, and the result is disengaged staff.

Whilst some maintain that the Government announcement means greater job security for older staff, others disagree. Their fear is that, without a compulsory retirement age, employers will look for other reasons to terminate the employment of older staff, in order to manage their workforce and maintain a steady stream of new, younger employees.

Uncertainty on the job security front will impact the day to day life of any worker, resulting in them being less satisfied, less motivated, less engaged and, ultimately, less productive at work. This is exacerbated when the workers are in the ‘fearful forties’, as they are at a life stage that is often characterised by significant financial responsibility (mortgage, pension, children’s university fees, medical bills etc). Where once these workers were allowing themselves to contemplate retirement and a more relaxed pace of life, the change in retirement age policy leaves them having to worry about keeping their jobs for several more years.

The Fearful Forties

An uncertain future

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Figures suggest that, by 2031, the working population aged 40 and above will outnumber those below 40 by 1.4 million. Employers are faced with the very real possibility of large proportions of their staff feeling trapped by the higher retirement age: believing there is no opportunity to progress at their age, and also fearful of losing their jobs to younger, more energetic staff. This will not only have a negative impact on the attitudes and standard of work of those staff members, but will also create a ripple effect, that will affect all staff, regardless of their age.

Employment paralysis

GfK’s Employee Engagement specialist, Hannah Rousseau, believes that the recent economic instability has resulted in many over-45s suffering from “employment paralysis”: they are disengaged with their current jobs, but the economic climate makes looking for

an alternative job an unviable alternative. People are left in their current job unhappy and de-motivated.

Those that supported the move to scrap a compulsory retirement age say that companies and the economy will benefit from the “precious skills and experience” of the over 65 work force. However; if these staff members are suffering from low morale and engagement, their skills and experience will not be maximised. Employers need to focus on ensuring that their most experienced employees feel they are pro-actively valued and that they are an asset to their business.

Sukhi Ghataore

Employee Engagement Specialist

+44 (0)20 7890 9313

sukhi.ghataore@gfk.com

Connect with Sukhi on Linkedin

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The Fearful Forties