More than a third (37 percent) of UK managers believe the state pension age (SPA) should increase in line with longer life expectancy, research has found.
The survey of 1,013 managers, from the Chartered Management Institute (CMI), found that support for an increase in SPA is significantly higher among managers aged 55 plus (49 percent) compared with just 33 percent of those under 55.
The findings highlight a sharp generational divide as the government moves ahead with its SPA review, which will determine how to set the state retirement age for future decades.
Currently, SPA is 66 and is set to rise to 67 between 2026 and 2028. It is scheduled to increase to 68 between 2044 and 2046, or possibly sooner.
However, CMI data highlights key challenges as people extend their working lives.
More than half (51 percent) were concerned about the physical demands of certain jobs, while 49 percent pointed to reduced job prospects for older workers.
Further concerns included the financial strain on those unable to work until pension age due to ill health or lack of suitable roles (41 percent) and the mental demands of certain occupations at older ages (39 percent).
Bias barrier
Previous CMI research, published in 2024, found that reluctance to hire older workers was entrenched. While 91 percent of managers were open to hiring people aged 18-49, that dropped to 73 percent for candidates aged 50-64 and just 38 percent for those aged 65 plus.
The findings underline the need to address the operational and cultural barriers to working later in life.
Ann Francke, CEO at CMI, said: “There’s a growing acceptance of the economic necessity of working longer – yet managers are rightly flagging that many organisations are not ready to give workers the support, and often the training, that they need to stay in the workforce well into their late 60s.
“This underscores the need for skilled leaders who can challenge hiring bias and for professionally trained managers who can build genuinely inclusive, multi-generational teams – and who recognise the value of experience in a fast-changing workplace. This includes astutely managing health or caring responsibilities that are the reality for many older workers, and investing in upskilling the entire workforce, regardless of age.
“A country that asks its citizens to work longer must be a country that values their experience and supports them throughout their working lives. Getting this right is essential to advancing productivity and future-proofing our economy.”
With labour market participation among older workers becoming a priority for policymakers, HR professionals may need to prepare for more older employees in the workforce, and to ensure that recruitment practices, job design, and benefits provision reflect the realities of longer working lives.
