A new research from tech company Multiverse has revealed that millions of workers over the age of 50 in the UK are thinking of retiring early due to the lack of technology skills in the post-pandemic economy. The research warns that this could have serious implications for the labour market, the productivity and the public finances.
The silver exodus
According to the research, around 5.3 million workers over 50 are now considering retiring early, providing a large risk to an already strained workforce. The research found that 41% of the over-50s workers feel less confident about their tech skills compared to younger colleagues, and 29% feel that their skills are outdated or irrelevant. Only 16% have received any tech training from their employers in the past year.
The research also revealed that the over-50s workers are more likely to face barriers to learning new skills, such as lack of time, money, motivation or access to opportunities. As a result, many of them are opting to leave the labour market rather than upskilling or reskilling themselves.
The economic impact
The research estimates that the early retirement of the over-50s workers could cost the UK economy £182 billion in lost GDP by 2030, equivalent to 8.1% of the current GDP. This is because the over-50s workers are a vital part of the workforce, contributing to the productivity, the innovation and the diversity of the economy. They also pay taxes and spend money, supporting the public services and the consumer demand.
The research warns that the early retirement of the over-50s workers could also worsen the existing skills gap in the UK, especially in the sectors that rely on digital and tech skills, such as finance, health, education and manufacturing. The research suggests that the UK needs to fill 11.7 million tech roles by 2030 to meet the demand, but the current supply of talent is insufficient and unevenly distributed.
The policy response
The research calls for a comprehensive policy response to address the tech skills gap among the over-50s workers and to encourage them to stay in the labour market. The research recommends that the government should:
- Provide a “midlife MOT” service to assess the skills, finances and opportunities of the over-50s workers and to offer them personalised guidance and support.
- Expand the National Skills Fund and the Lifetime Skills Guarantee to cover more tech courses and qualifications for the over-50s workers and to make them more accessible and affordable.
- Increase the incentives and the flexibility for the employers to invest in the tech training and the development of the over-50s workers and to create more inclusive and age-friendly workplaces.
- Promote the benefits and the opportunities of tech careers and lifelong learning to the over-50s workers and to challenge the stereotypes and the stigma around age and tech.
The research also urges the over-50s workers to take advantage of the existing resources and initiatives to improve their tech skills and to explore new career paths. The research highlights the success stories of some of the over-50s workers who have switched to tech roles or started their own tech businesses after receiving training and mentoring from Multiverse.
The future of work
The research concludes that the tech skills gap among the over-50s workers is a major challenge for the UK economy, but also an opportunity to create a more diverse, inclusive and productive workforce. The research argues that the over-50s workers have a lot to offer to the tech sector and the society, and that they should not be left behind in the digital transformation of the economy.
