Older workers are being left behind in the job market, with the employment rate for over-55s still far below the government’s 80% target, according to the State of Ageing 2025 report from the Centre for Ageing Better published this week.
The report also highlights stark regional inequalities, with over three times as many 50-64-year-olds in work in the South East compared to the North East, delivering an £86 billion boost to the South East’s economy while other regions struggle—particularly the North West, where ill health is a major barrier to employment.
Steve Butler, CEO of Pension Potential, part of Punter Southall, agrees with the findings and urges both government and employers to act. “The traditional cliff-edge retirement model is outdated. Many older workers want flexible options or a phased transition into retirement, but policies and workplace practices haven’t kept pace. Today, many people in their 50s and 60s are looking for flexible work options or even a gradual transition into retirement and government policies need to reflect this.”
Without action—such as mid-life career reviews, flexible working, and better retention strategies—Butler warns older workers face a “perfect storm” of being unable to retire yet struggling to stay in work.
Dr. Carole Easton, Chief Executive at the Centre for Ageing Better, adds that regional inequalities further stack the odds against older jobseekers. “Where you live has a huge impact on your employment prospects in your 50s and 60s.”
Emily Andrews from the Centre for Ageing Better calls for urgent reform before any changes to the state pension age, advocating for more financial assistance for those who cannot work and tailored support for those who can.
“This isn’t just about employment figures,” Butler adds. “It’s about recognising the value older workers bring to the workplace and ensuring they have the support they need to keep contributing.”
About Steve Butler
Steve Butler, CEO, Pension Potential is an expert and advocate for age diversity in the workplace. He is the author of several books on the topic including ‘Manage the Gap: Achieving success with intergenerational teams’ and The Mid Life Review; A business leader and serial entrepreneur, Steve is passionate about helping people maximise their retirement income.
