Age diversity
Contributing factor
Made redundant
Retirement savings
The resultant impact of redundancy on retirement savings is significant. Older workers who have been made redundant are expected to save £29,000 less for retirement than the average employee aged 50 and over.
According to the findings, the gap between estimated annual retirement income and the minimum level of income required for a comfortable lifestyle reduces by 18%, or £1,900 annually, for those who have been made redundant, compared to those who have not.
Additional funds
For employees over 50 who have experienced one or more of reduced hours (9%), a salary cut (7%), furlough (12%) or redundancy (8%), an annual reduction of £3,100 is estimated.
The government’s planned investment of additional funds to get over-50s back into work is a step in the right direction, but there is much more to be done to promote an age-diverse workforce. We are living and working longer than ever before and the reality is, many of us will be relying on working longer to save for retirement.