Recession threat to older workers and retirement plans
Jennifer Lowe | Latest pensions news, 26 May 2009
Workers over the age of 50 are facing a recession double whammy: afraid they will be forced out of their jobs due to their age and worried that their retirement incomes will be decimated by the recession.
According to research from Help the Aged and Age Concern, more than one in four over 50s fear that their age will see them forced out of jobs if their employer decides to reduce staff numbers due to the economic downturn.
Recent figures showing that over the past year the number of unemployed people aged 50 plus has risen by nearly 50 per cent suggest these concerns have become reality for many.
While the nightmare of unemployment looms large for the over 50s, many are also seeing their pension prospects hit hard by the downturn. Nearly half of respondents said they are less confident than six months ago that their pension and savings will provide them with a comfortable standard of living in retirement.
Michelle Mitchell, charity director for Age Concern and Help the Aged, says, ‘These figures paint an extremely bleak picture for millions of over 50s whose working lives are at risk of being cut short by the recession. Those who do lose their jobs will face significant obstacles to getting back into work, leaving them financially vulnerable as they approach retirement. For many over 50s, one of the lasting legacies of this recession will be a retirement blighted by poverty.
‘During this difficult time, we are urging employers to start seeing beyond job applicants' age and look at the skills, experience and commitment older workers have to offer. The Government must also play their part by providing a tailored package of support for over 50s who do lose their jobs - this is currently almost non-existent.’
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