As employees hit their 30s they increasingly prefer shorter working hours irrespective of the drop in take home pay.
This was a key finding of research from Phoenix Insights, which revealed that workers reach a turning point between the ages of 30 and 35.
In this age bracket, working hours, location and the way people work are the top three flexible work priorities, according to the longevity think tank, which is part of the Phoenix Group.
Worryingly, for employers, researchers found that one in eight workers are dissatisfied with their current flexibility options at work.
The key reason people want more flexibility and fewer hours is because they have care or home related responsibilities.
There are various types of flexibility, but most focus on when, where, and how people work. Access to flexible working helps more people enter and stay in the workforce, bringing financial and social benefits to individuals and boosting the economy.
Phoenix Insights said that younger workers at the start of their careers want to increase their hours or move jobs to boost the opportunity to earn more and develop. But the early 30s are a turning point because, while pay is always important, people are more likely to want to change their working patterns and cut rather than increase their hours. People value the option to work fewer hours, even if that means less income.
Researchers found that this trend increases when employees are in their 50s. At this life stage people are more than twice as likely to want to work fewer rather than more hours.
The think tank said that for workers over 50, reducing hours is a popular way to transition to retirement, while extending their working life.
For people in their 30s and 40s responsibilities such as childcare are a key part of why they want fewer hours. Further research from Phoenix Insights and Timewise showed that care or home related responsibilities are the main reason people opt for part-time roles.
However, since the Covid-19 pandemic there has been a growing preference among people in their 30s to cut the hours they work for reasons other than care responsibilities. For example, this group wants reduced hours to allow more time for hobbies and wider interests.
One younger worker told researchers: “Covid has changed things. People want to pursue interests beyond work. Part-time shouldn’t just be for parents.”
Patrick Thomson, head of research analysis and policy at Phoenix Insights, said: “Flexible working has become a hot topic of discussion with public debate centred on whether people should work more days in the office instead of from home.
“However, flexibility is much more than the hybrid working debate. It is about how we can make work more sustainable for the future and accessible to a wider proportion of society who otherwise might be excluded or driven from the workplace. Getting this right is important not just for individuals but also critical for boosting productivity and tackling the issue of economic inactivity.”
He said that the think tank’s research shows that most people think that they could do their job or one like it by the time they’re 60, but most think they couldn’t do it to the age of 70.
“With longer working lives becoming the norm, something needs to change,” he said.
“People are still facing financial hardship from the fall out of the cost-of-living crisis and there are currently millions of people in the UK under saving for their future retirement. Supporting people to remain in work and continue to earn and save while they balance other life commitments, caring responsibilities or ill health will go some way to addressing these challenges.”
Phoenix Insights data modelling suggests as many as 17 million people are under saving for retirement. As a result, people who fall out of work early are likely to be more financially vulnerable later in life unless they can re-enter the workforce.
The think tank said that flexible working is key to enabling more people into the labour market, whether that’s earlier in life when they have plenty of time to save, later on to top up their existing pot, or even after the traditional state pension age to help supplement their retirement income.
Analysis by Standard Life, which is part of Phoenix Group, found working just one day a week for a few years after reaching retirement age could add as much as £21,000 to a retirement pot. This would build up from £18,000 in fund growth as a result of delaying access pension to savings from 66 to 70, and £3,000 from additional contributions from working one day a week.
Mike Ambery, retirement savings director at Standard Life, said: “When people fall out of work their future retirement income isn’t always front of mind. But time out of employment can have a double whammy effect of no pension contributions and losing the benefit of valuable contributions from the employer. Improving flexible working practices so more people can remain earning and saving whether early in their career or nearing retirement age is a key part of addressing how we can start to address retirement income adequacy.”
