According to Dr Ros Altmann, the government’s business champion for older workers, if everyone worked one more year this would add 1% to annual GDP.
Her report, A New Vision for Older Workers: Retain, Retrain, Recruit, suggests that keeping older people in employment can also boost wages and prospects for younger workers.
The report points to academic and historical evidence that shows that if the over-50s have more money to spend through being in work, this in turn boosts the economy and creates more employment opportunities for everyone.
By 2022, the number of people aged between 50 and state pension age will be 13.8 million, while the number aged between 16 and 49 will have shrunk by 700,000. This makes it imperative for businesses to make the best of the skills and experience of older workers, said Altmann.
“If the over 50s continue to leave the workforce in line with previous norms we would suffer serious labour and skills shortages, which simply could not be filled by immigration alone,” the repor