- Half of over-50s made redundant haven’t found another job and two out of three have had to take a pay cut
- And recovering from redundancy becomes much harder at 55-plus, research from Key Retirement Solutions shows
Nearly half of the over-50s workers made redundant in the past three years have yet to find a new job, new research* from leading independent over-55s adviser Key Retirement Solutions shows.
And two-thirds of those who have found other work have had to take a pay cut in order to get back into employment, the nationwide study shows.
The research paints a bleak picture of the employment prospects for the over-50s – and it shows the pressures of redundancy become much worse at 55-plus.
Key Retirement Solutions study found 48% of over-50s workers made redundant in the past three years have yet to find another with 66% of those getting back into work taking pay cuts. Around 48% of them admit they have had to take a substantial pay cut.
People under-50 made redundant in the past three years have also suffered but only 33% have failed to find another job and 53% have had to take pay cuts with 23% admitting to substantial drops in salary.
The worst-affected age group however is the over-55s – Key Retirement Solutions research shows 60% of them have yet to find another job while 72% have had to take pay cuts.
Key Retirement Solutions launched the research in response to a growing trend for over-50s customers inquiring about equity release plans which are only available to over-55s. Around one in five equity release plans were taken out by before the age of 65 in the three months to June 30th. And it believes the pressure of redundancy at 50-plus underlines the importance of maximising income through pension savings and other assets
Dean Mirfin, Group Director at Key Retirement Solutions (www.keyrs.co.uk), said: “Redundancy at 50-plus is wrecking retirement plans with people struggling to find other jobs and those who do having to adjust to substantial pay cuts.
“It underlines the real need for financial planning and taking advice in order to have some back-up in the event of redundancy. We continue to see people at younger ages applying for equity release to shore up their finances and would urge anyone made redundant in their 50s to focus on the solutions available.
“There are solutions with many people having built up substantial wealth in their homes and in retirement savings but advice is vital in order to maximise income
The study shows that over-55s take on average 11.6 months to get back into work compared with 5.1 months for those aged 50 to 55.
That drops substantially for younger age groups – around 51% of 18 to 24-year-olds made redundant in the past three years found another job within one to three months.
There is some good news for the over-50s - nearly 70% of those who are in work are not worried about the risk of redundancy over the next 12 months. That is better than for the under-50s where just 63% are not worried about the threat of redundancy over the next year..
Key Retirement’s free independent annuity service compares the whole market. The following providers must be included in any list to provide a whole of market service: Aegon, Aviva, Canada Life, Hodge Lifetime, Just Retirement, Legal & General, LV=, MGM, Partnership, Prudential, Reliance Mutual, Scottish Widows and Standard Life.
Customers using Key’s service this year have gained an average 21% more income over their original quote1. A major factor in the increased income has been the number of customers qualifying for enhanced rates through medical and lifestyle conditions with more than half of Key’s customers qualifying for enhanced annuities. Customers using Key’s services are always asked about health and lifestyle conditions to check whether they qualify for enhanced terms on their annuity.
Customers can call 0808 252 9773 or for more information on Key’s annuity service go to http://www.keyrs.co.uk/annuities/. Anyone looking to release equity from their home can request an independent guide to equity release by calling 0800 531 6010 or by visiting https://www.keyrs.co.uk/free-guide.
