Almost one in four (37 percent) workers aged 55 plus would consider leaving their job if flexible hours were significantly reduced, according to a report from the Standard Life Centre for the Future of Retirement.
The survey of 4,000 UK adults also found one in four in the over-55 age group would accept a pay cut for greater flexibility.
Flexibility in where people work was equally critical for employee retention. The research shows that 30 percent of over-55s, and nearly half (48 percent) of all workers, would think about quitting if they could no longer work from different locations, such as home.
With around 26 percent of people aged 50-64 already economically inactive, this group’s preference for more flexible work will be key to retaining them.
Advanced manufacturing and life sciences are particularly vulnerable to losing staff. Together these sectors employ 3.4 million over-50s, including 450,000 over-65s, but lose around 440,000 over-50s each year due to early exits. It’s estimated that this costs £31 billion in lost output each year.
The pension provider’s report, ‘Counting on Experience’, urges employers to adapt workforce plans to retain older talent.
Recommendations include expanding flexible working options and improving job design to support longer careers and increasing access to occupational health and in-work support for those managing health conditions. The report also encourages employers to bolster access to midlife training, career guidance, and financial advice to help workers plan and adapt.
Patrick Thomson, head of research analysis and policy at the centre, said: “Flexible work can be the difference between retaining skilled employees or seeing them walk out the door. It allows many in their 50s and 60s to balance work with health or caring responsibilities. If we want to drive economic growth, we can’t afford to lose their experience.”
He said that as people live for longer, it’s important that employers and policymakers continue to make it easier for people to work for as long as they want or need to, so they can save enough for a good quality retirement.
“That means normalising age-diverse recruitment, investing in lifelong learning, and offering the flexibility people need to balance work with health and caring responsibilities.
“At a national level, the benefits are just as clear. Retaining experienced workers boosts productivity, eases pressure on public services, and supports long-term economic growth. Backing older workers isn’t just the right thing to do, it’s smart economics.”
