The latest employment figures highlight a shifting trend, calling for updates to the workforce rulebook to address the inevitable factor we all face: ageing
Ageing is the great equaliser in the workplace. That may sound like an oxymoron for anyone who has had to deal with ageism in the workplace or when applying for a job. But when you think about it, it’s the one factor that gives us common ground: none of us are getting younger and we seem to be “staying in the game” much longer.
Arguably, any company, HR team or recruitment firm not embracing this trend-cum-oppotunity could be missing a beat, according to the latest employment figures and Helen Morrissey, Head of Retirement Analysis at Hargreaves Lansdown.
Why are more people working beyond 65?
The pandemic dramatically altered employment, especially for older workers. Many left their jobs early—due to retirement, redundancy, or simply rethinking their work-life balance.
That said, the employment rate for adults aged 50 to 64, though dipping in recent years, is showing signs of recovery. It fell from a record high of 72.5% in 2019 to 70.7% in 2023, but over the past year, it inched up slightly to 70.9%, according to the latest Department for Work and Pensions (DWP) figures.
This shift, although small, could signal a larger trend in the coming years, especially with the average retirement age steadily increasing. In 2024, men are leaving the workforce at 65.7 years on average, while for women, it’s 64.5 years.
However, it’s more data from the DWP that is perhaps more telling. The employment rate for those aged 65 and over has surged, from 26.9% in 2014 to an 40.4% in 2024.
For freelancers and agency workers, especially those offering specialised services like consulting, marketing, or technical expertise, this shift represents a valuable opportunity. However, even workers with decades of work and life experience and insight may need guidance to help them transition into newly created roles or manage younger teams and the technology they use to communicate internally and with customers.
The big pension gap and how to “rebuild” a pension
According to Helen Morrissey, Head of Retirement Analysis at Hargreaves Lansdown, the mass exodus of over-50s from the workforce has slowed significantly. She notes, “The flood of workers heading from the desk to the sofa over the age of 50 has slowed. Meanwhile, the tide is turning for those in their mid-60s, and the proportion who are still hard at work after the old state pension age of 65 has shot up.”
However, as Morrissey points out, this led to an unexpected gap in their retirement plans. “Leaving the workforce early not only means fewer contributions being paid into a pension, but it’s also likely that people start drawing that pension earlier, which can put it under strain,” she explains.
This is especially relevant for older workers looking to re-enter the workforce or pick up freelance work after an early retirement. Rebuilding a pension can be daunting, but Morrissey suggests there are ways to tackle this. “If they have already flexibly accessed their pension, they can continue to make contributions of up to £10,000 per year under the money purchase annual allowance… if you have yet to access your pension you can contribute up to £60,000 per year,” she says.
For recruitment agencies or HR teams, there’s potential to market services that cater to the specific financial and career needs of this group. Offering flexible, part-time, or project-based work could be key to attracting this demographic, many of whom are eager to balance work with their personal lives.
What are the hidden challenges of older workers?
While the rise in older workers is generally seen as a positive, there are still obstacles, particularly for women. The DWP reports that around 750,000 people aged 50 to 64 are either actively seeking work or are inactive but willing to return to the workforce. Morrissey notes that for many women, the decision to leave work is often influenced by caregiving responsibilities, stating, “When asked for the reasons as to why they are leaving work, women overwhelmingly say it is to look after home or family.”
This highlights the need for more flexible and part-time work options, particularly for women aged 55 and older balancing younger and elderly family members and a career. Agencies and companies who are keen to hire freelancers can be part of the solution and not the problem—such as offering flexible working hours or remote work options.
Moreover, older workers who’ve taken breaks due to health or caring responsibilities may face challenges in restarting their careers. As Morrissey points out, “There are signs that people who have stopped work for a period, for health or caring reasons, may have difficulty restarting their careers.” Agencies and freelance hiring platforms could benefit from offering targeted reskilling or upskilling programmes, helping older adults return to the workforce with up-to-date expertise.
However, sometimes networking with fellow freelancers despite your fear of small talk is one of the best sources of information on upskilling and having a sounding board.
Adapt and conquer
Hiring companies and recruitment agencies that can adapt their talent pools to accommodate older workers will gain a competitive edge in today’s tight labour market. The flexibility to offer part-time contracts, remote work, and shorter-term projects could be key to tapping into this growing demographic.
However, like the rest of the talent marketplace, workers coming back to the market, whether 35 or 65 do not need the uncertainty of an unregulated umbrella company market. Can you imagine, coming back after retirement only to be embroiled in a tax avoidance or ghost payroll scam or scheme not of your making?
Ultimately, while working past 65 might not align with everyone’s career or retirement dreams, as Morrissey says, “It’s a real positive in terms of giving people the flexibility to keep working as long as they want or need to.”
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