In a bid to boost employment opportunities for individuals over 50, former pensions minister Baroness Altmann has proposed a visionary solution, drawing inspiration from Sweden's highly successful "3 day week" model.
This policy suggestion would aim to encourage older individuals to embrace a Swedish-style three-day working week, offering them the chance to work part-time and forego early retirement.
A Nordic Inspiration: Embracing the Swedish Model for Older Workers
Baroness Altmann's proposal centers around the concept of providing tax incentives to employers who hire mature workers.
These incentives could be funded through the reduction or elimination of National Insurance contributions by employers.
The goal is to underscore the immense value that older employees bring to the workforce, potentially introducing these tax exemptions as a temporary measure. While tax advantages are presently accessible to workers upon reaching the age of 66, they are not extended to their employers.
In Sweden, specialist employment agencies cater to the needs of older individuals seeking part-time employment. Baroness Altmann envisions a future where this becomes the norm in the UK, with a gradual transition into what she calls "retirement." During this phase, individuals can embrace flexible, part-time roles that align with their changing needs and energy levels.
Redefining Retirement: Challenging Age-Old Norms in the 21st Century
Baroness Altmann highlights the reluctance of many UK employers to hire individuals in their late 50s, emphasising the need to challenge the prevailing societal notions of retirement.
She asserts that the concept of abruptly terminating work at a specific age is obsolete in the 21st century and has adverse effects on physical health and financial stability.
Preserving Financial Security: Rethinking Early Pension Withdrawals
Baroness Altmann also advises against early withdrawals from private pensions at the age of 55, stressing the importance of safeguarding financial security.
She suggests that the pension industry must do more to educate individuals about the benefits of delaying these withdrawals.
Breaking Down Age Barriers: Older Individuals in the Gig Economy
Baroness Altmann is a proponent of older individuals taking on roles typically associated with younger workers, such as delivering for companies like Deliveroo, provided the work is not overly physically demanding.
Flexible Work Arrangements: Adapting the Workplace for the Over 50s
Furthermore, she advocates for increased flexibility in the workplace, including part-time options and job sharing opportunities for older individuals.
She urges the government to take a leadership role in promoting greater employer flexibility and addressing age discrimination in the workforce.
Government Initiatives: Leading the Charge Against Age Discrimination
Baroness Altmann also suggests the introduction of a stamp duty tax break for older individuals who downsize their homes. This incentive would enable them to live more affordably, reducing the need to tap into their pensions prematurely.