New report on how to encourage labour market activity among 60-64 year olds
Researchers at the University of Kent have published the results of a study on how to best encourage the 60-64 age-group to take up or remain in work.
The study, which was conducted in conjunction with the University of Edinburgh Business School on behalf of the Department of Work and Pensions (Extending Working Life Division), also investigated the opportunities presented by State Pension equalisation to create incentives and remove barriers to work for this age-group.
Previous research documents a number of individual factors, such as health, caring responsibilities and financial circumstances, which are correlated with early withdrawal from the labour market. This new study, which was led by Professor Sarah Vickerstaff, Head of the University of Kent's School of Social Policy, Sociology and Social Research, aimed to better understand how these factors interact to influence decisions about when and how to leave employment.
The key findings include:
Flexible working, particularly part-time and short-term contracts, were favoured among those research participants who wanted to work longer.
Those who did not wish to work on typically felt that they had worked for long enough. There were strong gender differences, with women much more likely to mention social reasons for continuing to work, whereas the men were more inclined to feel that they had already 'done their bit'.
Health, caring and financial circumstances interacted to affect decisions about whether or not to continue working. Among those who defined their current health as 'good' or 'reasonable', concern about a change in their health status coloured the way they thought about working on, with many wanting to enjoy their retirement 'while their health lasts'. Dual caring responsibilities (for partner or parent as well as grandchildren) emerged as a major issue for a number of research participants.
Many respondents were reacting to events as they unfolded and often with incomplete knowledge about benefits and pensions, their likely retirement income and of the prevailing policy situation, such as changes to the State Pension (for example, equalisation or State Pension deferral). These circumstances meant that respondents found it difficult to make clear plans. This lack of knowledge coupled with a general climate of distrust about pensions and government policy, acted as a significant barrier to respondents' willingness to engage with the Extending Working Life initiatives.
Real or perceived factors, such as benefits traps or tax on pensions acted as a disincentive for respondents to get back to work. Some respondents had used the services of Jobcentres at some stage in their working lives. While some of these respondents reported positive experiences of the service they had received, the majority had negative experiences and generally older respondents did not think they would use Jobcentre Plus to help them back into work.
Most respondents had heard about the Employment Equality (Age) Regulations, but many had erroneous assumptions about the implications for retirement age. As well as those who stated explicitly that they thought retirement was now completely open-ended, many of the more negative viewpoints (forcing people to work longer; blocking jobs for younger people) also implicitly reflected the notion that there was now no retirement age.
'Encouraging labour market activity among 60-64 year olds' (DWP Research Report number 531) by Sarah Vickerstaff, Wendy Loretto, Jenny Billings, Patrick Brown, Lavinia Mitton, Tina Parkin and Phil White from the School of Social Policy, Sociology and Social Research, University of Kent, in conjunction with the University of Edinburgh Business School, is published as part of the DWP Research Report series.
A copy of the report (and summary of the research) can be downloaded from www.dwp.gov.uk/asd/asd5/rrs-index.asp
Contact: mediaoffice@kent.ac.uk
Story published at 12:39pm 21 November 2008
