how can we support older workers?' an ilc-uk european policy debate, supported by prudential

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European policy debate: How do we support older workers? 3rd September 2013 This event is kindly supported by Prudential #workinglongereu

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Tuesday 3rd September, M&G, Governor’s House, Laurence Pountney Hill, London, EC4R 0HH, 16:00 for a 16:30 start – 18:30 Featuring Steve Webb MP (Minister for Pensions); Christopher Brooks (Age UK) and David Sinclair (ILC-UK), presenting findings from a new policy review of European innovations in supporting longer working lives. Chaired by Baroness Greengross, CEO, ILC-UK and cross-bench peer Europe needs older workers. Its long-term ageing population and recent economic hardships are creating huge fiscal and demographic pressures - pressures which could be greatly relieved if it can encourage its workers to remain in work for longer. How is this to be achieved? The European Union recently launched its Europe 2020 strategy which set employment targets of 75% for workers aged 20-64. However, with the old-age dependency ratio for the EU28 predicted to climb over 50% by 2050, much more still needs to be done. In this event we will hear UK and EU perspectives on how older workers can be supported, with contributions from Steve Webb MP, the UK Minister for Pensions; and Christopher Brooks (Age UK) To inform this debate, ILC-UK launched a report at the event, supported by Prudential, which shares key policy approaches being taken across to support older workers.

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Page 1: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

European policy debate:How do we support older workers?

3rd September 2013

This event is kindly supported by Prudential#workinglongereu

Page 2: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

Welcome

Tim Fassam

Head of Public AffairsPrudential

This event is kindly supported by#workinglongereu

Page 3: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

Welcome

Baroness Sally Greengross

Chief ExecutiveILC-UK

This event is kindly supported by#workinglongereu

Page 4: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

Steve Webb MP

Minister of State for Pensions

Response to Research

This event is kindly supported by#workinglongereu

Page 5: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

David Sinclair

Assistant Director, Policy and CommunicationsILC-UK

Working Longer: An EU perspective

This event is kindly supported by#workinglongereu

Page 6: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

David Sinclair, International Longevity Centre – UK @ilcuk

@sinclairda

Page 7: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

Thank you

Thanks also to Gordon Scott, Tim Fassam and Prudential for making this piece of work possible.

Brian Beach, Jessica Watson

And: Matt Hawkins, Michelle McGagh, Trinley Walker.

The participants at our consultation event in Brussels in June 2013. Including our speakers at the event, Rebecca Taylor MEP, Oscar Vargas (Eurofound), David Lain (University of Brighton), Clare Talbot (Department for Work and Pensions, UK). Thanks particularly to Maureen O’Neill (President of the Social Affairs Section, European Economic and Social Committee), for hosting the event.

Page 8: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

Working Longer: An EU Perspective

Explored what works Why do some EU

countries do much better than others when it comes to older workers?

Policy and evidence review

28 country profiles Event in Brussels (EESC) Incorporated latest

statistics

ILC-UK are an international organisation

One of 14 members of the ILC family (USA; Israel; India; China; Brazil; South Africa..)

We are currently working on European projects on immunisation; constipation; health seeking behaviour; IT

Frequently called on to speak internationally

Page 9: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

Explored the role of innovation in extending working lives

Extending working lives

Discussed the macro-economic importance of extending working lives

Highlighted theneed for a new narrative about retirement.

Highlighted the barriers to gradualretirement for older workers.

Made the casefor focusing on the demand forolder workers

Set out thereasons why people retire when they do

Page 10: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

Summary

Participation rates of older workers

across Europe

Why do we need to work longer?

What is the EU doing?

Seven challenges to overcome

What should we do?

Messages for the Minister

Page 11: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

Participation rates of older workers across

Europe

Page 12: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

Who “does” older workers well?

http://www.flickr.com/photos/85169589@N00/1027343397/in/photolist-2yMppc-5ohnBt-d5C9Dq-7VXeAX-8Dopm9-8DokGs-8DkdhV-8DnzoQ-8DnF1s-8DnHQ3-cNNv2d-9H5AuG-7J8a4d-8Doqsm-8DjHSg-8DkaAB-8Dkp54-8DonDo-8DkmpV-8DoiuG-8Dog5J-8Dowms-8Dkivt-8Doo45-8Dkpot-8DouFN-8Dk96R-8Dkaht-8DovfQ-8Dkosi-8Dka1T-8DotJq-8DohRm-8DomR1-8DoidN-8Doe4f-8Dk822-8DoiQE-8DohzC-8DjMVF-8DnRwo-8DnSCj-8DjPY2-8DjuKB-8DjCTr-8DnDVG-8DnBPy-8DjNKZ-8DjLXc-8DjtF4-8DnAxy

Over 80% of men and 70% of women aged 55-64 in Sweden are part of the labour force.

Fewer than one in five women aged 55-64 in Malta are in work.

Page 13: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

When would Tintin retire?

The Labour Force Participation of Belgians aged 55-64 is under 50%

In 1929 Tintin was 14-17

He would now be between 97 and 100

He would (probably) have retired a long time ago

http://www.flickr.com/photos/97043691@N05/8975822752/in/photolist-eFaroG-eFaq4q-aFk3ge-8jb8T7-9Kbhqj-axt3E4-ffpKZe-aeNV3z-aiBjFu-bBFoCG-dKZ9MJ-aoT3vQ-dvGbsV-aFjAC4-ax3hHd-9Hhp4B-9yPKVt-9taEdN-8fLk2L-7XVGwS-aH2rRk-b15Ffc-eu3XGm-8zZ1hJ-8iSLY7-dhsKmn-dNAEoo-ayQUtD-aGaR44-aGaQXD-a3oAeU-a3oBqh-dpDmWX-ex8UnK-8swDeC-cARkbu-8QdyRs-ayQUvK-axqX7E-7H8VNP-7H8bMg-7Hc7VG-7Hc8vW-7H8WeF-auFs3Z-7ZN6ig-8gGkU5-9xQ22w-bcC9rx-9Cpaxt-a3k2jx

Page 14: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

A culture of early retirement

Belgium has a strong culture of early retirement, which

puts it among the countries with the lowest levels of

older workers. In 2006 the Solidarity Pact between

Generations was introduced, including a goal to

increase the employment levels of the older age group

(55+). Since these measures were introduced, the

Belgian government has supported a number of

initiatives such as workplace improvements,

intergenerational relations in the workplace and health

at work schemes. In 2012, the OECD reported that its

impact on these fronts had been ‘minimal’.

Page 15: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

Since the 1970s..

1970s-90s: Long-term falls in the participation of older workers continues due to unemployment; public and private pension schemes incentivising early retirement; and the provision of relatively generous pension schemes and social security.

1995-2007: The long-term falls in employment of older people across Europe begin to reverse as incentives to retire early are reduced.

Post 2007: The growth in the participation of older workers across Europe continues despite the recession. However, unemployment amongst older people increases.

Page 16: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

The Netherlands – a typical example?

The Netherlands saw huge falls in

employment of older workers between the

1970s and 1990s. Labour marker

participation of older men fell from 81% in

1971 to 42% in 1993. This drop has been

attributed to ‘a generous social security

system that has actively promoted early

retirement’. Nonetheless, it has also

witnessed the sharpest participation level

increase among OECD countries during the

subsequent decade, up by more than 16%.

http://www.flickr.com/photos/terence_s_jones/7403905450/sizes/m/in/photolist-chfX9f-fbFJRW-fbFB5E-9YzaoF-9Yzbcv-9YC567-8dr1h4-92Z5ZA-9614JN-9RJ9zf-7TwDqg-8wSmh5-866eaa-8gJd51-7AFfh6-8ecNHW-7LZqLX-bG9gAD-9S13LM-9GXirS-ayFH7x-a2jySg-9Htd6A-9Q1oy8-bVJ4QF-8JgZjV-9GUsgB-9S4bGf-9S4m4w-9S1SaM-9S4pUh-9S1jUB-9S48EE-9S7ZpU-9S1PST-a1LuUt-9S1yZT-9S133F-9S1kHe-9S4HcU-9S4CbW-9S4Noj-9S4MgY-9S1D7P-9S4qFw-9S4vG9-9S1GJi-9S1Hhk-9S4fCL-9S4Af3-9S4u49/

Page 17: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

“Europe” is interested in older workers

In 2001, the European Council of Stockholm set a target to increase the employment rate among older workers (55 to 64) in the EU to 50% by 2010, up from 37% in 2000.

The 2002 Barcelona Target then set the ambition of adding five years to the average age at which workers exit the labour market.

The EU’s flagship Europe 2020 growth strategy targets a 75% employment rate for workers aged 20-64 by 2020. Achieving this will require increased participation of older people in the workforce and a reduction in rates of early retirement and labour market exit.

Page 18: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

Half of 55-64 year olds across Europe are not in work

Page 19: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

Labour Force Participation rates by gender for people aged 55-64 in 2012

Page 20: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

Participation is up

Across the EU, the Labour market participation of older workers is up

http://www.flickr.com/photos/mike_miley/9329810305/sizes/m/in/photolist-fdrHyn-8xz3FR-9vnwcd-fAtowj-dzqfDv-dL6bCk-7JYQ65-aeEvcc-aTr5g8-7TmCAE-8xbijT-8x91h7-cCpgPq-cCpeuh-cCpeSj-8x6272-e1Btov-e1H8kd-e1H8i5-e1H7RU-e1H8ym-e1Bt2e-e1H7T7-e1H8qq-e1BtwF-e1Btc4-e1H8M3-e1BtjB-e1BsW4-e1H7Hm-e1BsZz-e1H8Tb-e1BtvD-e1H7NL-e1H835-e1H7US-e1BtJB-7TYQKq-a5s36p-cAsDzu-cAsK5Y-cAsGqo-dQiX5Q-8w36Fd-fCmQeo-7GG6RH-dKD24E-9mPYKU-aeHusB-dPUVKv-dQ1xmQ/

Page 21: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

Changes in Labour Force Participation of Males aged 55-64, 2002-2012

Page 22: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

Changes in Labour Force Participation of Females aged 55-64, 2002-2012

Page 23: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

Percentage of men aged 55-64 in employment in 2002 and 2012

Page 24: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

Percentage of Women Aged 55-64 in Employment in 2002 and 2012

Page 25: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

But it is not time for complacency

Across Europe, just under one in three of those aged 60-64 are in employment

Just 13% of Hungarians aged 60-64 were in work in 2010 compared to over 60% of Swedes.

There are still countries where fewer than 40% of people aged 55-64 are in employment (Slovenia, Malta, Greece, Croatia, Hungary, Belgium and Poland in 2012).

In one third of Member States, no more than one out of five workers (60-64) is employed.’

Over the period 2002-2008, the average age of labour market withdrawal among the EU-28 had only increased by an estimated 1.3 years, from 60.1 to 61.4 http://www.flickr.com/photos/heartindustry/3539408126/sizes/z/in/photolist-6oLoJ3-

6t2ZRY-6tE2Zp-6tE2Zt-6tE2Zz-6yNN61-6zee36-6zg5kx-6zGKop-6Azi8D-6Azj1X-6C6Jc3-6DfPU7-6F7Z4y-6HsjYN-6KxdVN-6PMdG9-6RTF24-6RTVSj-74t2G7-757chN-76mWJ9-77X5Vp-78orde-79ZZG9-7bpyf9-7cLdny-7hJf7s-7jwENJ-7kTpsU-7kY2Ku-7pri8t-7psPSN-7qZWHT-7rtx6Z-7tB2Lw-7uskh2-7wghjp-7wghNr-7wghQF-7wk6Jj-9WDMaM-89dsU1-7TYQKU-dBf26o-84k1CX-eeoG5V-eYkq5p-eYkrkr-eYkt5c-eYkqER/

Page 26: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

Why do we need to work longer?

Page 27: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

We are living longer

Page 28: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

And more of us expect to work longer

A 2010 survey of 7,500 citizens in ten European countries found an

expectation among 55% of respondents that working lives would extend

beyond current national ‘retirement ages’.

But we still don’t like the idea of higher “retirement ages” ‘a 2012

Eurobarometer survey showed most Europeans (60%) reject the need

for higher retirement ages.

Page 29: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

And we will need the money

Adapted from Aon 2010

State Pension Age has increased (and/or become less generous). Unless we extend working lives there are significant risks of future pensioner poverty

Page 30: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

Governments are beginning to link SPA to longevity

In Sweden, pension entitlements are adjusted on

the basis of expected life expectancy at the time of

retirement.

The Greek government has created an automatic

adjustment mechanism that will kick-in in 2020 and

will incrementally increase the statutory retirement

age in line with increases in average life expectancy.

The UK is exploring how to link pension age to life

expectancy.

Page 31: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

Fewer workers

The number of working age adults across Europe has begun to decline across the EU-28. Despite the recession, some sectors of the European economy already suffer from skills shortages.

There are 13.5 million UK job vacancies, which need to be filled over the next ten years, but only seven million young people are projected to leave school and college over that time.

A report published by the Dutch Ministry of Interior and Kingdom Relations has suggested that by 2020 ‘there will be gaps of 30% or more in the employment pool for teachers and policemen, and even higher gaps for nurses’.

http://www.flickr.com/photos/yooperann/8684179741/sizes/m/in/photolist-eeoG5V-eYkq5p-eYkrkr-eYkt5c-eYkqER-eYwQ3A-eYkst8-eYksZe-eYusTG-egUZvF-8LzKbh-8NXiGF-dG2nQD-dxeYhH-aeo7Fr-aW6xkV-7TYQJN-7NE7J6-7NE7ug-cCsnC3-cCsonj-cCsmY7-8Xunt9-cCJC3N-9vYwDu-cCKwUW-drCVg5-bYvrFJ-boAHXD-ePBAmL-9bTuNn-7AWjby-8rpRUo-fAzNBv-aeEupK-b8haur-93ywzE-d8CVHw-fysKGk-9ukpCn-aeEvBc-aeEDbp-aeECQM-9qWM9P-fAtoq9-bY34zN-aJDtZF-8XMw7e-8x61Sr-asR8ab-84RcrD/

Page 32: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

Projected Old-Age Dependency Ratio, 2010-2060

Page 33: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

Migration won’t solve the problem

The EU will receive over 60 million net

migrants over the next 50 years (yearly

average of around 0.2% of the EU

population).

Although inward migration could play a

part in reducing dependency ratios, the EU

would require a far higher level of net

migration to maintain the current

dependency ratio (an additional 11 million

migrants by 2020).

Page 34: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

And migration within the EU is creating significant problems for some member states

With over a million Bulgarians currently choosing to live and work

abroad Bulgaria is increasingly suffering from an exodus of

people of working age. Eurostat estimates that in 2060 Bulgaria’s

old-age dependency ratio will hit 60% – and at that stage it will be

the fifth highest in Europe. This problem is being confounded by a

low-birth rate and by poor public health – the latter of which is

prompting people to withdraw from the labour market prematurely.

The Bulgarian government has expressed its desire to take

action to promote economic activity amongst older workers and

tackle this worrying trend towards a reliance on an increasingly

small working-age population

Page 35: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

The cost of ageing

Across the EU, age-related spending is projected to rise from an annual cost of 25% to 29.1% of GDP between 2010 and 2060.

Page 36: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

Europe’s Economy needs older workers

Older workers are likely to play an important part in delivering future EU economic growth

The lump of labour fallacy has been debunked “States with the highest employment rates for older workers also have some of the lowest youth unemployment rates.’

http://www.flickr.com/photos/wobblin/93110984/sizes/m/in/photolist-9edDN-cEtQ8-d9vjk-dsULJ-e2UpY-i8roy-nCkvH-qCksF-suxzs-xifA2-AXqRq-HUtkC-K5ZPt-2xDrtX-34HXSE-3bkVxT-3n2a4g-3s8Y22-3z6FTQ-3JiS8Y-3KaBnu-4dHUEQ-4iCUGq-4wNbM8-4wSkmb-4KyV1j-4N3Rc1-56fKcL-57iwU3-583aQs-5cva8f-5k543p-5nxxYa-5vzBXm-5xCQMQ-5AdZMc-5BStWT-5QYtPA-5R3Qve-5RUEc2-5WwEZ7-69cPMM-6cCG5h-6nzjkK-6oLoJ3-6tE2Zp-6tE2Zt-6tE2Zz-6Azi8D-6Azj1X-6C6Jc3/

Page 37: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

A retirement, not an ageing problem

Page 38: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

EU Initiatives supporting working longer

Pensions and retirementPromoting ‘adequate, safe and sustainable’ pensionsEncouraging Member States to reform public pensions systems

Employment law, equality and age discriminationLegislating on age discriminationSupport and promotion of Member States’ policiesCreating strategies around active ageing and extending working lives

Structural and cohesion funds

Funding researchFunding programmes such as FP7

Page 39: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

EU support to national policymakers: coordinated strategies and mutual learning

Understanding demographic change The European Employment Strategy The Open Method of Coordination (Social Inclusion

and Social Protection) Challenging age-based discrimination Equal opportunities for people with disabilities A strategy for gender equality Social innovation The EU Programme for employment and social

solidarity (Progress) Public health priorities, physical activity promotion

and funding Promoting accessibility and mobility Promoting ICT for active ageing Encouraging lifelong learning

Page 40: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

European Social Fund

Slovakia has used the €1.5 billion received from the

European Social Fund in 2007-2013 to invest in

education and training. From 2007-2011, 24,000 new

jobs were also created. Although these jobs were not

specifically for older people, the project does aim to

establish a lifelong learning culture in Slovakia.

Page 41: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

Seven challenges to overcome

Page 42: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

Seven Challenges to overcome

Achieving gender equality

Skilling up the older workforce

Supporting older people in the recession

Matching the demand and supply of older

workers

Tackling ageism

Improving health

Recognising the diversity of the working

experience

Page 43: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

Achieving gender equality

In every EU Member State, the life expectancy of women is higher than

that of men, by 5.9 years on average.

Yet despite living longer across the EU, women participate less in the

labour market and retire earlier.

Page 44: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

Pension equalisation

Increasing the employment rates of older women is important in the

context of the move towards gender equalisation of pension ages across

Europe.

In 2009 13 Member States had lower pensionable ages for women

than for men.

By 2020, 18 will have equalised pension ages.

Five further Member States have long-term plans to equalise pension

ages, and just four have no legislation in place to do this.

Page 45: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

Are things changing?

In the UK, 30 years ago women’s work was mainly low-

skilled manual work. Now those women working in

their 50s are working at similar levels - if not pay - as

men.

There is a significant gender divide in Malta. While

74.6% of males in the 55-59 age group are in

employment, the figure shrinks to 22.5% for women.

The main reason for this withdrawal from the

workforce (generally and also specifically for women) is

not due to retirement but a culture in which families

are the main care units for the old, young, or disabled.

Page 46: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

Gender difference in employment rates of people aged 55-64, 2012

Page 47: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

Skilling up the older workforce

The current cohort of older

workers in Europe have low

levels of education and

qualifications compared to

younger groups, and are more

likely to have worked in

agriculture and production

http://www.flickr.com/photos/vancouverislanduniversity/7030135879/sizes/m/in/photolist-bHehti-bujtkb-bujsVQ-bHehDa-85BTMf-fB3sz9-8U4aEt-8U7ef5-8U7dZq-8U4azx-8U7e2J-8U4amK-8U4aoF-8U4bBx-8U4aqD-8U4ava-8U4bxt-8U4awT-8U4aJT-dANpSj-efjvLR-efjvMa-fAtoH5-efqfy9-9TKhNE-dMDErt-cC4Rpo-dyTQy4-dyZiFS-dyTQBk-dyTQfH-dyZiRW-dyTQVk-dyZj3E-cbr6db-cC4RQf-dpMRHC-dM4fu3-eBwiug-9sWF5C-bqSX4Z-8L8bJY-bHefuX-asYrni-8pHJLM-bVbsTU-egmkn9-d9aUVJ-bxEvP5-bxEvrf-bLzdct/

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The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

In Poland, 350 universities have registered to become Third Age Universities as part of a scheme designed to promote more flexible learning for older people. The Polish programme 45/50 PLUS provides on-the-job and vocational training for older people to help them return to the job market.

In order to increase the education and training opportunities, the German government intends to introduce greater flexibility to working time and open up more sabbaticals for its older workforce.

The Estonia Unemployment Insurance Fund (EUIF) has therefore invested in mentoring and counselling schemes for older workers.

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The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

Supporting older people in the recession

In all recessions before 2008, older workers were treated as a disposable

resource: the first to leave, encouraged by early retirement and

generous redundancy schemes.

Increasing unemployment over recent years has meant that European

policy-makers particularly at a Member State level, have not had an

adequate incentive to invest in policy initiatives to improve access to the

workplace for older workers.

Page 50: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

Portugal, Spain, Cyprus, Greece, and Ireland,

the countries arguably hardest hit due to the

economic crises, have seen falls in the

employment rates of men aged 55-64.

But these countries are not alone; of the 28

Member States just seven - Malta, Austria,

Germany, Poland, Bulgaria, Finland and

Slovakia – have seen unemployment fall

between 2002 and 2012 for men aged 55-64,

with Slovakia witnessing the largest fall in

unemployment. http://www.flickr.com/photos/9908376@N07/4373407902/sizes/m/in/photolist-7EsRNw-8RJjdB-bxWpLx-etxshm-7Ucs5f-7LijWT-atUvu1-aJB6ma-8HgfbD-84JRCz-7xLBS4-7URU5v-awFypQ-e1wDjw-9FUpvN-f36Fby-8UuX2V-8rqiTR-bxDTPt-9LSGwg-8Eqq7X-bJ64j2-e14cTm-9qrePP-8tQSxH-8y4MwB-8y8Crf-9qR8sV-7LAAaq-9KQC44/

Page 51: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

Unemployment rate of men aged 55-64 in 2002 and 2012

Page 52: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

Unemployment rate of women aged 55-64 in 2002 and 2012

Page 53: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

Long-term unemployed (12+months) as % of total unemployment for people aged 55-64 in 2012

Page 54: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

The current (2012)

unemployment rate in Finland

is around 7.5%, below the EU

average, and the employment

levels of older people have

increased more than

employment overall. However,

older workers are often over-

represented among those

made redundant.

http://www.flickr.com/photos/76657755@N04/8125991446/sizes/m/in/photolist-do4Q9N-aFgGDj-86TEBW-9X5Lqo-f5vgmU-f5vg6m-bpmgQw-cZXCwf-f5Aius-a3c5r8-8Bgicg-fbumXo-bTYvjt-9h1sGm-8aHRDx-7GNpAC-8aM9nq-7JRuoY-7JMyH4-9JJouy-7JMyFV-7JRujY-7JRuiW-aNpW5P-aZhUrc-8fc3Fd-dntomG-8kSS8s-8kPEYD-8kPEV6/

Page 55: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

Matching demand and supply in the labour market

Is Europe’s economy

creating the right jobs to

meet the needs and

wishes of the supply of

older workers

A need for a focus on

demand. More part time

work opportunities?http://www.flickr.com/photos/viskadourakis/3468991141/sizes/m/in/photostream/

Page 56: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

Tackling ageism

A survey of employers from five European countries in 2010 found large numbers of employers opposed to the idea of employees working even past 60, let alone 65

Kelly Services reported that ageism was a bigger issue than gender discrimination in Hungary.In Romania, ‘the labour market and its actors are still relatively less positive to older workers’.Employers in Greece tend to view age as an inhibitor to productivity, rather than seeing the benefits that experience and knowledge can bring.Despite ageism being a particular challenge in Estonia, there are at present few if any efforts made to create an age-friendly culture amongst employers and the general population.

Page 57: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

Improving health

45% of survey respondents were

concerned about health as a barrier to

working longer. In Germany and

Norway, about two-thirds of

respondents said this was their main

worry (Aon 2010)

Our analysis has found relatively few

initiatives by governments or

employers to explicitly improve the

health of older workers.

Page 58: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

All Portuguese workers of 50+ are now required to carry out annual

general medical exams.

Ageing at Work is a European Commission supported project that

develops training for HR professionals on health and age

management at a European level.

The Work Ability model developed by the Finnish Institute of

Occupational Health offers a framework and set of interventions to

help organisations make the necessary adjustments.

Page 59: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

Recognising the diversity of the working experience

Older workers across Europe are

more likely than other ages to be

self employed, on open-ended

contracts, or working part-time.

We need to better understand the

informal economy in relation to

older workers?

Page 60: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

What should be done to support working

longer?

Page 61: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

Taking a life course approach to working longer

A high percentage of people aged 25-49 across Europe are in employment (78% in 2010), and there is not significant variation across the EU (between 70% in Spain and 85% in Sweden).

The EU and Member States should not seek to ‘pitch one generation against another’ in creating opportunities for extending working lives;

The EU and Member States should begin to measure labour market adjusted dependency ratios;

Member State initiatives to support flexible working should be accessible to people of all ages;

People of all ages should be supported and encouraged to take up learning opportunities.

Page 62: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

Better use of fiscal incentives to support working longer

The EU is right to continue to promote increases in state pension age as a tool not just for fiscal sustainability, but to nudge an increase in the participation of older workers;

Member States should not assume that increases in pension age alone would automatically increase retirement age. Member States will also need to do more to support and encourage, rather than just force, working longer;

The EU should evaluate the impact of pension reform on extending working lives;

Member States should remove any existing incentives for early retirement that remain within their state pension systems.

Member States should explore policies that consider the impact retirement has on couples, not just individuals.

Page 63: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

What works?

A nation-wide measure in Bulgaria to encourage businesses to hire unemployed persons of aged 50 and above had, by 2011, hired an estimated 500 people, whilst another scheme (HRD) had been estimated to have helped just 100 older people back into work.

In Spain, the government attempted the introduction of partial pension systems. This programme had poor take-up.

Belgium introduced a 2006 Solidarity Pact between Generations, including a goal to increase the employment levels of the older age group (55+). The Belgian government has supported a number of initiatives such as workplace improvements, intergenerational relations in the workplace and health at work schemes. In 2012, the OECD reported that its impact on these fronts had been ‘minimal’.

Page 64: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

A Portuguese New Opportunities Initiative gives preferential access for older people to lifelong learning. So far, however, this has registered a very small number of workers of age 55+.

As of 2008, employees in Poland aged 45+ have been able to use the services of the Labour Office for vocational training and financing the cost of personal qualifications. In 2010 just 601 employees aged 45+ received training support through the Labour Office.

The Portuguese Intervention Programme for the Senior Unemployed was launched to stimulate job creation for older workers. From 2008-2010 this reached just half of the number of unemployed it was expected to reach (an expected 90,000 people).

Page 65: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

Incentives to early retirement remain

There are positive disincentives in

Hungary to remain in work

because pension wealth actually

declines after the age of 60.

Early retirement schemes have

played a major part in reducing

the participation of older people

in the workforce in the Czech

Republic.

Page 66: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

Creating more, better and more appropriate jobs for older workers

The EU should better promote the potential to use the European Social Fund to provide more support for older workers;

The EU and Member States should better promote good practice in workplace and job adaptation.

EU and Member State initiatives to tackle age discrimination should continue;

The UK’s experience of removing the default retirement age should be evaluated with a view to speeding a process of ensuring that older people may not legally be discriminated against in employment simply because of their age;

The EU and Member States should continue to ensure that workplaces are appropriate and safe for an older workforce;

Page 67: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

Creating more, better and more appropriate jobs for older workers Member States should take a strategic approach to working longer

rather than introduce ad-hoc initiatives. The strategic, long-term approach should involve employers, employees and trade unions;

EU regional policy should support the creation of jobs for people of all ages. It should recognise and respond to the challenges of ageing regions and understand the diversity of approaches needed at a regional level;

The EU and Member States should focus more attention on demand side solutions to extending working lives. Creating the sort of jobs for an ageing society;

The EU and Member States should recognise that public sector spending cuts may have a negative impact on the employment opportunities of older people and initiatives must be put in place to ensure public sector employees can transfer their skills to other sectors.

Page 68: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

Gradual retirement and flexible working is vital

France has introduced a gradual retirement scheme, which allows

workers to reduce their working hours on reaching 60 (62 in 2017) and

receive a proportion of theirpension in return.240 However, take-up has

been low and the OECD has argued that the scheme should better

support employees in their negotiations with employers.

In 2007, Austria, Norway and Spain introduced phased retirement

systems.

Changes to the Labour Code were introduced in 2012 in Czech Republic

to help increase flexibility in working hours and to reduce severance pay

when someone has been employed for two years or less.242

Page 69: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

Lithuanian law provides a legal-base

for working part-time or with flexible

hours, but this is rarely enforced; in

2010, just 8% of Lithuanian workers

were working part-time.

Flexible working practices and

additional leave have also been

introduced in Slovenia to encourage

people to stay in work for longer. http://www.flickr.com/photos/regus-media/5839014005/sizes/m/in/photostream/

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The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

Tackling inequalities

The EU and Member States must continue to

promote lifelong learning

Age should not influence access to training

opportunities

The EU and Member States must invest in

tackling health inequalities

The EU and Member States should explicitly

target initiatives at increasing the participation

of older women in the workplace;

Page 71: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

Ensuring the research agenda contributes to extending working lives

The Commission research agenda must promote ‘what works’ in extending working lives;

The Commission and Member States must engage and support researchers interested in better understanding the motivations of extending working lives;

The Commission research agenda could better understand and promote the best ways the private and public sector can adapt jobs to meet the needs of an ageing society;

The Commission research agenda must explore how to tackle health inequalities and should monitor age discrimination and its impact on older workers.

Page 72: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

Inadequate focus on care as a barrier to working longer

The EU and Member States must ensure that care-giving is not a barrier to working longer.

Page 73: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

Messages for the Minister

Can we aim to push our way up the participation tables? We could lead the world. How can we work together to get there?

Focus extra policy efforts on skills, gender issues and health and care Keep talking positively about older workers and their importance Be honest. Keep reminding people they are going to have to work

longer. Move the social norm. Evaluate what works (independently). We don’t really know what

works across Europe. Plan for the long term (Take a strategic approach to older workers) Get your colleagues in other departments involved. How can we

engage other departments (e.g. BIS, DFE and DH)?

Page 74: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

Many thanks

David Sinclair

Assistant Director, Policy & Communications

International Longevity Centre

[email protected]

02073400440

Twitter: @ilcuk

and @sinclairda

Page 75: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

Response to Research

This event is kindly supported by#workinglongereu

Christopher Brooks

Policy Adviser for Employment and SkillsAge UK

Page 76: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

Panel Debate and Q&A• How can we tackle the barriers to working longer amongst

older women• How can we improve the skills of older people across

Europe• How can we tackle ageism in employment• How can we encourage employers to improve the health of

their workforce• How can we get employers to innovate for an ageing society• What would your policy priority be for the EU/UK

This event is kindly supported by#workinglongereu

Page 77: How can we support older workers?' an ILC-UK European policy debate, supported by Prudential

European policy debate:How do we support older workers?

3rd September 2013

This event is kindly supported by Prudential#workinglongereu