First we had the great resignation, then the great retirement. The next post-pandemic theme for the workplace could be the great unretirement, writes Stuart as Chief Executive of Rest Less
The pandemic had a devastating effect on the job market, impacting most of us in some way or other. For workers in their 50s and 60s, a demographic already facing age discrimination in the workplace (for example workers over 50 are less likely to receive workplace training than their younger counterparts and once out of work are significantly more likely to be in long term unemployment) the impact has been particularly severe and has left a lasting legacy.
During the pandemic, faced with age discrimination in the recruitment process and a lack of workplace flexibility, many felt they had no choice but to step out of the workforce entirely and find other ways of making ends meet financially. Personal circumstances changed for many too – increasing numbers of people were either dealing with health conditions themselves, or had to take time out of work to care for someone else. As a result, economic inactivity soared amongst 50 and 60 year olds, reversing a decades long trend of UK employment growth driven by this section of the workforce.
Two years since covid changed our working world, we are now seeing a new trend emerge: one of delayed retirement dates, and even unretirement as economic activity levels amongst older workers rise to their highest levels since Jan-March 2020.
We ran a poll in June of 500 of our retired members and found that one in three of them were thinking about going back to work. When we asked them why, 32% said for the mental and social stimulation, 12% said because of cost of living rises, 8% said to top up their pensions and 47% said it was because of a mix of all these reasons.
For many, the covid lockdowns were a time of isolation and reflection. We often forget how much of our social lives and personal identity revolve around the workplace and now that the world is opening up again, it’s no surprise to hear more people talking about missing the social and wellbeing aspects of the workplace.
We’re also hearing from some of our members that whilst the lure of retirement proved strong during the pandemic for one reason or another, two years on having given it a trial run, they’ve decided that it’s not for them and they want to return to the workplace in some capacity again. One member summed it up by saying: “I’m bored, I’m not using my brain, I feel like I’ve lost my identity and don’t feel like I belong anywhere”
Beyond the wellbeing aspects of being active in the community, against a backdrop of spiralling inflation, rising cost of living and volatile financial markets creating uncertainty around private pension savings and future retirement incomes, it’s no wonder people are thinking about ways to make additional earnings.
Quite simply, the financial calculations around retirement someone might have made just 12 months ago – with inflation under control, strong financial markets driving private pension savings and a feeling that the Government would guarantee the income of pensioners through the triple lock – have completely changed. Fast forward to today, and inflation is soaring with no signs of slowing down, financial markets (and private pension savings) are highly volatile and the government removed the state pension triple lock in April – meaning state pensions increased by just 3.1% at a time when inflation was running at 9%. Whilst the Government has indicated the removal of the triple lock was just for one year, pensioners will be forgiven for feeling that if the triple lock has been removed once, it could happen again and is now a political decision.
These financial aspects will be playing on people’s minds – even for those who might be considering returning to the workplace for the social and wellbeing aspects – and seem to be accelerating peoples plans to return to the workplace and boost their incomes.
- The views of contributors are not necessarily those of the Council. For more information about Rest Less click here.
