Older workers face tough futures because of mergers and the growth of technology in traditional financial services firms.
Research by the Open University Business School has revealed that industry consolidation has reduced the number of senior and middle management posts.
Technology, mergers and industry consolidation have a disproportionate effect on members of the workforce over 45, the research claimed.
In the City alone, the research suggests technology advances have led to the number of support staff falling from 150,000 in 1990 to about 15,000 today.
And older workers will also find themselves priced out of the market by younger unskilled workers when applying for places in the booming call centre sector.
Report author Dr Philip Taylor said: “A significant number of jobs in the financial services sector are being deskilled, with computer programs negating the need for personal knowledge and judgement found in older employees.
“While older employees may have the interpersonal skills to be very good call centre workers, they may not be in the right location and may find low pay levels and conditions unacceptable.”