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The Ageing of Britain`s Workforce
A RECENT BBC documentary, “The Town That Never Retired”, sought to show the effects of increasing the state pension age by putting retirees back to work. Although the results were entertaining, they need not have bothered. Away from the cameras, unprecedented numbers of older people are staying in work. Since the start of the recession that began in 2008, the number of 16- to 24-year-olds in work has fallen by 597,000. Over the same period the number of workers over the age of 65 has increased by 240,000.
The greying of the British workforce dates back to around 2001, since when the proportion of older people working has nearly doubled. But it has accelerated since the start of the recession. There are several reasons why. Happily, people are living longer and healthier lives, which makes staying in work less daunting than it was. Less happily, low interest rates, a stagnant stock market and the end of many defined-benefit pension schemes (where employees are guaranteed a payout linked to earnings and service) make it a financial necessity. And changing attitudes, spurred by rules against age discrimination, are making it easier than ever.
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