The cost of living crisis and older workers delaying retirement

In last week’s #EmploymentLaw101 session Peter Beisty and Adrienne Hardy discussed how the cost of living crisis has led to some interesting trends in relation to workers delaying retirement or returning from retirement.

We discussed a US study which showed that:

  • A one-year increase in the average retirement age of workers who are close to retirement reduces the wage growth of younger coworkers by 2.5 percent per year.
  • When the retirement delay affects a worker in a higher-level position, it also reduces the number of categorical promotions, which they define as workers moving from blue-collar to white-collar jobs or from either blue- or white-collar to managerial jobs.
  • A one-year increase in the retirement age of a white-collar worker reduces the promotion rate to white-collar jobs by about 21 percent.
You can view our recording of our session below or listen on Spotify and all good podcast providers!
Important update
Our next session will look at the newly announce changes to holiday pay, TUPE transfers, and working time record keeping. These changes are likely to come into force on 1 January 2024 so please join us for this very important update where we’ll explain what is changing and why, and what you need to do to be legally compliant!
Join us for our next 101 session on Thursday 30 November at 11 am.
Click here to register