Mid-life career changes: what next for 49-year-old David Cameron?
As David Cameron resigns and turns 50 this year and whilst he contemplates what to do next what is the position of others in the UK of a similar age?
We know that for many people, it is more difficult to get a job when you are middle aged. 47.2% of people aged 50+ and unemployed have been out of work for 12 months or more compared with 34.3% of all adults in the UK.
The ‘Missing Million’
A report by BITC highlights the Missing Million: more than 1 million people aged over 50 who are pushed out of work through redundancy, ill health or because of caring responsibilities. For example, 50-64 years is the peak age of caring. A significant number of people in this age bracket are trying to balance work and caring and face considerable financial, practical and emotional challenges on a daily basis.
David Cameron will continue to have high earning potential, a generous pension in retirement and holds a number of assets which will help provide him with a comfortable later life. The median hourly pay for UK workers in their 50s is £12 (£13.03 for workers in their 30s) and the Joseph Rowntree Foundation’s (JRF) recent strategy designed to solve poverty in the UK highlights that four out of five low paid workers fail to escape low pay after 10 years. It is not surprising then that 30% of working age people can’t afford to pay into an occupational or private pension.
Retain, retrain and recruit more workers in their 50s
So while we don’t need to worry about Mr Cameron’s prospects in later life, there is more we can do for the average man or woman approaching their 50s. Last week’s Age in the Workplace report set out the business case for employing older workers and the range of things employers can do to retain, retrain and recruit workers in this age group. This includes help with financial planning and caring responsibilities; supporting access to training and flexible working. The report includes ideas such as the mid-life career review: a structured review which helps employees look at options and plan for the future. It is easy to see how we could all benefit from something like this, including the former PM. As we live and work for longer, we are not likely to stay in the same career for our whole working lives and some jobs, such as manual work, will be difficult to do into later life. Developing new skills, through access to training and support, will be as important for older workers, as they are for younger workers.
JRF’s strategy highlights that whilst pensioner poverty has reduced considerably in recent years, targeted action is needed to maintain this progress. This includes ensuring better prospects for future generations by improving pay and progression and bolstering the assets of those of working age. Ensuring that more people contribute to savings schemes and pension funds is an important part of this.
A broader point is that with longevity comes an opportunity to rethink and reimagine our lives. As set out in the book 100 year life, living to 100 years old will be commonplace for many people who are already alive today. Our tradition pattern of three stages of life: school, work and retirement won’t be fit for purpose. The authors argue, that we would be better to think about ‘multi-stage’ lives. Not just working longer but restructuring our work and social lives to manage a number of transitions and breaks across the life-course. The challenge here will be to ensure that this is the experience of the many and not simply those like Mr Cameron, who are in a more privileged position.
David Cameron is not in danger of being written off as he faces the prospect of turning 50 and changing career. We must make sure that we have the same aspirations for the silent majority of his peers.