UK - Employers' discriminatory practices push older workers onto state benefits, fuelling a demographic timebomb, a new report has claimed.
The Trades Union Congress (TUC) calculated that without an extra one million people in employment by 2015, workers will face higher taxes, later retirement or old-age poverty.
Its new report warned that government plans to tackle the problem by raising the state pension would just push even more older people on to benefits, unless employers stopped discriminating against older workers.
Earlier this year, Global Pensions asked Pensions Comission chairman Adair Turner how the government could prevent over-50s from reacting to delayed retirement by simply sliding on to the benefit system.
“Unemployment benefit is much less generous than the state pension so although they might do that, it is not a costless exercise,” he answered.
But according to the TUC, those who want to work are struggling.
It said more than one million 50 - 65 year olds can’t find a job because employers won't recruit older workers or retain the ones they already employ by investing in training or making minor adjustments for disabilities.
The situation had led to a 'demographic timebomb' said the TUC.
It urged the government to introduce policies to retain and recruit older workers, and employers to establish 'age management' policies.
By Lisa Haines
The registration deadline for the Workplace Savings & Benefits Awards 2019 is today.
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