HOW OLDER WORKERS WHO REFUSE TO RETIRE ARE STOPPING THE YOUNG FROM GETTING STARTED
Changes to the default retirement age will block even more young people from entering the labour market, a new survey suggests. Bosses say that new Government rules, which come into force in October, will mean they no can longer get rid of their older workers at the top of the career ladder – so will have less money to hire new, young staff at the bottom. Experts predict the impact on the youth jobs market could be “profound.”
Previously, employers could force a worker to quit their job at the age of 65 – but from next month older workers will be free to stay in their jobs for as long as they like, possibly into their 70s and 80s. While this is good news for them, a new study suggests that their refusal to leave the workforce will block younger workers from entering: 22% of employers said that the biggest practical impact of the change would be having “less capacity to take on younger members of staff.”
In many sectors, senior employees command salaries of well over £100,000. This amount would fund four graduate roles at the same organisation. No wonder 46% of employers predicted the change will have a negative impact on their business.
Paul Griffin, head of employment at law firm Norton Rose, which commissioned the study, said:
“Scrapping the default retirement age was a bold move although to some extent inevitable. There’s no doubt that workers have a significant amount to offer their employers after the age of 65, but the knock-on impact on employers’ capacity to take on younger talent could be profound. It’s an issue many feared would be sparked by the change – this survey confirms that it’s very much a reality.”
The number of older workers has already ballooned, with many forced to keep on working due to a lack of decent pension or any other savings. It is expected to keep on rising, particularly as the baby boom generation (born after the Second World War) are starting to reach 65, and opt to keep on working.
And there are also fears that this change could impact graduates already in jobs, too. By refusing to leave the workforce, older employees will stop those below them from being promoted, which will have a trickle-down effect to the junior levels at any organisation. If older workers refuse to move on, how can younger ones hope to move up?
*Should older people be forced to retire at 65, to make room for younger workers?
Is it unfair that they’re allowed to hog space (and money) at the end of their careers – while young people are struggling to get their careers started?
*Should older people be forced to retire at 65, to make room for younger workers?
No, one needs to take account of population demographics. The number of people of pensionable age is 19%. I think a responsible society has to decide how nit lives with this sizeable proportion and how they too can contribute meaningfully to society.
Is it unfair that they’re allowed to hog space (and money) at the end of their careers — while young people are struggling to get their careers started?
B&Q make a point of recruiting older workers or brining older workers back into the workplace – why? Because the young simply don’t have the DIY skills.
The problem here is not the population demographics but the lack of training and skills in the you. One can’t simply ask 19% of the population to remove themselves from any meaningful way of sustaining a living in this recession.
One study doesn’t make reality.
If you think about it, our political leaders have stuffed everybody, young and old.
It’s dreadful so many grads (and others) wait years to start their careers. It’s just as scarey that very many over 55s have less than £500 in savings.
Well at least the 65 year old employees have something much more valuable than a graduate – 40+ years of experience. Seriously though I look around my workplace and there’s no one near retirement age here. Another scaremongering article. The only people of that age I know still working tend to own their own businesses so that’s hardly going to be an issue for graduates.
I doubt that many over 65s are working because they like it, they’re working because they need the money.
Bear in mind, as well, that many older parents of graduates are still supporting those graduates, so taking away their parent’s jobs isn’t going to help them.
@M Gardner
I see your point – and I know that over 65s don’t want to keep working! But the point is that some people of that age will be very senior, and therefore very expensive, and if they don’t move on then that is likely to have an impact on everybody below them… It is tough enough for young people to get a foothold on the career ladder at the moment – and my concern is that this change to the default retirement is unlikely to make things any easier for them…
I can’t believe you would even take this stance on what is otherwise a commendable website. Have you seen the mess the pensions are in? Do you think everyone over 65 has a fat salary, big house, a senior position?
In many sectors, senior employees command salaries of well over £100,000.
In many sectors, recent graduates can command the same salary. Perhaps those lawyers, doctors and bankers should be forced to retire at 30 as well?
@All
Clearly this is a bit of a sticky subject! But i’m really interested that so many people have rushed to defend the rights of older people to stay in their jobs, even if it means fewer jobs for young people just trying to get their careers started. Are you recent graduates – or a bit older? I’m genuinely fascinated by this reaction.
@Alix
I’m not taking any stance – just asking whether the rights of older people to stay in work should be balanced with the rights of the young trying to get their careers started? I think it’s a really interesting question worthy of discussion. There aren’t an infinite number of jobs for everybody of all ages – nor do employers have an infinite amount of money for their staff costs.
I am aware that not everybody around 65 is earning a huge salary, but at the kind of companies that most graduates are keen to get into, the more senior employees will be bringing home a pretty hefty wage. If they don’t move over, clearly that will have implications for everybody below them.
I’m sorry if anybody was offended by this piece, but think I am proud that Graduate Fog is pretty much the only place where frank debates like this are happening, and I really value everybody’s input (yes, even if you disagree with me!). If there is a subject that people are talking about (which it is) then it’s a subject I will be writing about.
Hi Tania,
I try to understand where you came from, but I do not think of a lot of persons willing to work over 60 yrs old.In the present time, it tough on everybody, the youngest tried to get their foot on the ladder and the older tried to get out but unfortunately they need to make money for supporting themselves. I do not think the subject should only focus on the older working and holding their jobs but rather on how the government can help the senior with better pensions, because I do believe this is where the problem lies. When the financial crisis happen in 2009, did you know that a lot of elderly lost their pensions because of the banks gambling it away? It is way to simple to say well “folks it’s time to say goodbye”, unfortunately like the younger they are in need of the money. In my opinion this article is the equivalent of saying young graduate are lazy or lack of experience and older people are too old so we should cut them off. And we can go on like this…
A young graduate with a job.
Hi Tanya,
I know IaAm a little late but had to comment on this- you don’t fight inequality/oppression in one group by treating others unfairly. Most older people (55+) I know who are still working would love to retire but can’t afford to. This is especially true of many of the older women I know who because of having big career gaps due to raising children have neither well paid jobs nor decent pensions. If anything those executives earning £100,000 plus a year are the ones more likely to retire early on their gold plated pensions.
We are all going to get older one day and is is foolish to forget that. We need to make allies with workers across organisations, not fight each other over crumbs.
A mid 20’s graduate who did eventually get the job she wanted