The demand for older workers is on the rise to support the economy, with the International Monetary Fund (IMF) suggesting that “70 is the new 50.” But does this imply that retirement should be pushed to at least 70? We explore differing perspectives.

James Kirkup, a public policy expert and former head of the Social Market Foundation, shares his thoughts.

For those entrenched in the hustle of full-time employment, the idea of retiring at 70 can be daunting. As I’m nearing 50, the thought of another 20 years of commuting is less than appealing.

However, establishing 70 as the standard retirement age could bring benefits, both for society and individuals.

We have a growing number of older individuals living longer, while the young workforce is shrinking. Contrary to popular belief, state pensions are financed by today’s taxpayers, creating increasing pressure on this demographic.

Currently, the cost of pensioner benefits exceeds £140 billion annually, accounting for over 11% of all public spending. Allowing this expenditure to continually escalate is neither reasonable nor sustainable.

Remaining active in later years correlates with enhanced happiness and health. Keeping engaged is beneficial for both mental and physical well-being. Financially, it can also be advantageous.

As most people will rely on defined-contribution pensions, which depend on contributions and investment performance, working a few extra years could positively impact retirement income.

Those additional years can provide extra savings and extended growth for pension funds.

This topic stirs strong emotions, especially among individuals engaged in physically demanding jobs. I don’t advocate that scaffolders should continue working until their 80s.

Instead, we should develop intelligent policies to assist older workers in retraining for positions that may be more suited to them as they age — enhancing our often-overlooked adult education system should be a vital concern. There may also be a need to allow certain workers with histories of strenuous labor or health issues to retire earlier than others.

A retirement age of 70 is justifiable for individuals and the economy. However, it cannot be implemented in isolation. It must be complemented by policies that foster flexible working conditions for older employees, as well as a national dialogue.

Ideally, we would transition from the traditional concept of “retirement” and embrace a gradual tapering of work throughout the final phase of our lives.

Opposing Viewpoint

Carole Easton, the CEO of the Centre for Ageing Better, warns against readily accepting the idea that better cognitive and physical health among older adults should lead to an increased state pension age or the presumption that longer work hours are necessary.

The previous adjustment of the state pension age from 65 to 66 resulted in a doubling of poverty rates for those aged 65, pushing nearly 100,000 individuals into poverty.

Older adults are a valuable asset to the economy, having been shown to enhance employer productivity. Yet, working until 70 is not feasible for a considerable segment of the population.

Health challenges, age discrimination, caregiving obligations, and rigid employment conditions are already compelling many to exit the workforce in their 50s and 60s. Data reveals that if you are 65, there’s a significant chance you’ve already left the job market, regardless of whether it was a choice.

Accelerating the state pension age without improving job accessibility for those in their 60s will only prolong the period during which individuals unable to participate in the labor market will survive on minimal benefits, lacking the opportunity for earned income.

This situation will lead to many spending years in a precarious state, caught between employment and retirement; struggling and waiting for the modest financial relief that a state pension offers.

The IMF report advocating for extended working years seemingly values individuals’ contributions to the economy only within the context of the workforce. Nonetheless, as people age, they can leverage their cognitive and physical abilities in alternative capacities.

Individuals aged 65 and above are the most active volunteers among adult age groups; grandparents contribute approximately £3.5 billion in childcare annually, and nearly three million individuals aged 50 and older are unpaid caregivers.

We cannot expect a workforce up to 70 without changing our collective mindset.

A reevaluation of our perspective on retirement is essential, understanding that the abrupt transition from full-time employment to retirement is no longer typical. We need policies and workplaces that accurately reflect this evolving reality.

Furthermore, it is imperative for the government and employers to recognize and appreciate the skills and contributions of older workers.