A new report predicts older workers may be most affected by the need to reskill and adapt to changing labour market forcesand that the state pension age could rise to 69 by 2042.
Older workers could be disproportionately affected by future changes in the labour market as a new study shows the most common age to face redundancy is 51, according to a new report.
The Decades of Change for Life Milestones report, by Evelyn Partners and the Centre for Future Studies, says 10 million people, or 30% of the UK workforce may need to change occupation or skills by 2030. This is in part due to increasing automation which could see 30% of jobs in Britain under threat by 2030, although the report says an estimated 85% of the jobs that will exist in 2030 haven’t even been invented yet.
The report looks at several different aspects of our lives in the next decates. It predicts the state pension age could rise to 69 by 2042 and to 70 by 2056, with the cost of a comfortable retirement increasing by 150% by 2050. Nevertheless, it says one in three 30 to 40-year-olds haven’t started saving for any form of pension. It adds that people of pensionable age are set to grow by 27% to 15.2m by 2045.
Rising state pension ages are due to changing demographics. The report says almost two thirds of today’s new-borns will live to see the next century, with people likely to work up until they are 75 as a result. It predicts that 21% of boys and 27% of girls born in the 2040s will live to 100 years of age.
Another result of changing demographics will be the rise of the ‘sandwich generation’ – responsible for caring for both their children and parents – and the necessity for many families to open their household to elderly relatives as the need for residential care doubles to 1.2m, and costs increase by 2040.