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Most older workers are simply hanging on at the office: 63% of workers over state pension age (currently 65 for men and a little over 61 for women) have been with their employer for more than ten years. Over two-thirds of them work part-time, mostly doing jobs that they once performed full-time. A big advantage is that they do not pay national insurance contributions—effectively a second income tax on younger workers.
According to Stephen McNair, director of the Centre for Research into the Older Workforce, this flexibility explains why older workers have not suffered so much in the slump. Instead of slashing the workforce, as in previous recessions, many firms have halted recruitment and cut working hours. At small businesses in particular, keeping on older workers is cheaper and less risky than training replacements. Over half of workers over state pension age work for businesses with fewer than 25 employees (though this may also reflect poorer pension provision).
Christopher Nieper, who owns David Nieper, a womenswear manufacturer based in Derbyshire, prizes his semi-retired workers, who can be employed at short notice and do not need to work full-time to survive. Retired machinists can fill in if there is a surge in orders; former sales advisers can work as part-time consultants. As his competitors have moved production abroad, depleting the pool of trained labour, retain in golder workers and their skills has become even more important.
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