π«π·/ π¬π§: Pensions, workforce and health
Mass protests are taking place in France against the decision to increase the state pension age by two years to 64. The UK state pension age will go up to 67 by 2028, and is scheduled to go up again between 2044 and 2046, but this timetable may be accelerated. Average disability free life expectancy at birth in the UK was 62 years for men and 60.7 years for women when last estimated by the ONS in 2020. This varies according to deprivation.
For workers
There is a correlation between living in less deprivation, being in employment and having a longer healthy life expectancy.
Those in employment perform better on many measures of cognitive function.
It is unclear whether work is cause or effect here.
For businesses and the economy
Demographic projections mean that a labour shortage is inevitable unless over 50s can be retained and migration can fill the gap.Β
For employers, older workers bring sector-specific expertise that new hires will take years to acquire.
Challenges
Age UK reports that of the 3.5 million people aged 50-64 who are economically inactive, 1.3 million are unable to work due to ill health and 0.5 million are unable to work due to caring responsibilities.
Around 1/3 of pre state pension age households have savings of less that Β£5000, and many are concerned that moving the goalposts will have a negative effect on the most vulnerable.
What does this mean for work and health?
As the state pension age goes up, age will no longer be a default exit point from the labour market for older people living with ill health. If we want to encourage people 50-64 to keep working, the gap in OH provision must be addressed. The disability employment gap increases with age. People aged 50-64 make up 40% of the working age disabled population.
Historically, workers over 50 have been more likely to be self employed or employed by SMEs than workers under 50. These are parts of the economy where there are known barriers to accessing OH support.
Franceπ«π· vs the UKπ¬π§
The work and health landscape in the UK is underdeveloped compared to France, where OH is mandatory for all public and private sector organisations with one or more employees. In France, more than 90% of the workforce have access to OH services, and this is funded by employers.
The welfare ecosystem is also different in France vs the UK. Social security contributions are higher in France, which pays for higher welfare benefits including higher unemployment benefit and state pension.
The work and health landscape is only one piece of the jigsaw that societies are facing around aging populations. But when it comes to work and health, France seem better prepared to push back the state pension age than we are.