Why working later in life can be fruitful: Sarah Coles

There’s no doubt that we’ll continue to see a big growth in those who can’t afford to stop work until later in life. For them, working later is something to be tolerated rather than celebrated, so there are some steps you can take to make it more bearable. A survey by the Department for Work and Pensions found that the things that are most likely to make people enthusiastic about working later are the ability to work part-time and the option to work flexibly. Everyone has the right to request flexible working, so it’s worth talking to your employer. They don’t have to accept, but they have to consider your request fairly. Around half of those in work aged 65 and over are working part time – so it can be done.

You could also consider the issue of work more holistically, and the things you might enjoy other than your current role. Your experience at work could mean you can move into training other people. Your life experience might mean you want to explore mentoring or coaching, where your age is a positive boon. Alternatively, there are plenty of skills you may have picked up outside work that you can put to good use making money. Anything from DIY to gardening, dog walking, driving and childcare may prove fruitful. Don’t be afraid to check out anything you have experience of – including caring. Just because you don’t really want to continue in your current job, it doesn’t mean there isn’t something else out there for you.

Fortunately not all older workers have been forced into working later in life: there are plenty of people who want to work. Some have spent their career building their knowledge and expertise, and want to continue to use it. In some cases, people have built their sense of self around their job, and they don’t want to lose that overnight. Others enjoy the mental stimulation or the social aspects of work. Some studies suggest it can be good for your health – although it’s not clear-cut, because those with better health may be the ones who are working later anyway, and while it can boost the health of those who actively enjoy their work, it can mean worse outcomes for those suffering stress and those with strenuous physical jobs.

If you want to work, the other major issue is that you might not be able to. Not everyone is in good enough health later in life. The latest figures show that in England woman can expect to get to just shy of 62 in good health, and men should get to 61 and a half. It means many won’t be able to work up to the state pension age – let alone beyond it.

Even if you’re well enough to work, you may need to care for someone who isn’t, or for younger family members, like grandchildren. In England in 2021, there were 4.7 million unpaid carers. One in five women providing care were aged 55-59 and 13% of men with caring responsibilities were aged 60-64. In cases where those care needs are acute, it can make it incredibly difficult to continue working. Carers often fall into the ‘economically inactive’ group, which rises significantly around state pension age. At 50 17% are inactive, whereas by 65 it’s 58% and by 66 it’s 69%.

If you’re keen to work, and available, you need to find an employer who wants you, and we can’t overlook the impact of age discrimination. This is actually against the law, but that doesn’t mean it isn’t harder for older people to find work.

Research by the Centre for Ageing Better found that those aged 50-69 were more likely than even the very youngest workers to say their age made them less likely to be recruited. The research found that candidates of this age had faced issues with employers who thought they would be less ambitious, adaptable or committed as someone younger. Potential employers had questioned their mental and physical capacity, and some had said they were worried that older people wouldn’t stay as long in the role.

If you can’t find work, you may find yourself drawing working-age benefits, which are significantly less generous than the state pension, and the gap has grown over time. It means today’s 65-year-old who can’t find work is far worse off than they would have been before the state pension age increased.

There are no easy solutions. One key is to be aware of potential difficulties around work as you get older, and build your financial plans so you’re not utterly reliant on being able to work later in life. You should have a robust Plan B you can roll out if you need to stop working. This means thinking carefully about whether you’re on track with pension savings, and whether you need to increase contributions. A pensions calculator will give you a decent idea of where you stand.

When it comes to finding work, it can be a good idea to get help. You can take advantage of support from the Job Centre, which should have champions for older workers, and offer returnships for those getting back into work. There’s help and advice on the Age UK website, from charities specialising in helping older people at work, and recruiters specialising in people over the age of 50.

There are plenty of challenges finding work when you’re older, so it’s worth accessing all the help you can – although not quite the kind of help that Demi Moore’s character turns to in ‘Substance’, which can land you with all sorts of far greater problems.

Inflation

December’s inflation data is out next week. Rising inflation wasn’t on anyone’s Christmas list, but there’s a decent chance that Santa delivered it regardless. Fortunately, it’s still likely to be a long way shy of the soaring inflation we faced two years ago, so the market is currently erring on the side of an early rate cut in 2025, and a couple of cuts during the year.

This is likely to be good news for savers, who can still get strong deals across the board. Fixed rate accounts have also held up impressively. However, this isn’t going to last forever, so if you have cash that you’re planning to fix for a period, don’t hang about.

Higher inflation isn’t great news for mortgage borrowers, but it’s unlikely to heap significantly more misery on them either, because this is largely priced into current deals. It means it’s still going to be key to shop around when you’re remortgaging.