The UK has a 33% dependency on workers aged 50+…
Across all industries in the UK, an average of...
… of the UK workforce were 50+ in the year to September 2023
This included...
... of employed workers
and a notable...
... of the self-employed workforce
A new report by the National Skills Academy for Rail (NSAR) shows that, despite a ‘normal’ 33% of the 240,000 rail industry workforce also being aged 50+ in 2023, a growing issue lies beneath this figure. The industry’s challenge is that whilst, over a seven-year period, its 50+ workforce had increased by 30%, its pool of workers aged 30 and under has reduced by nearly 50%.1
1. NSAR: Annual Rail Workforce Survey 2023
“Focus on early attraction is developing but needs to gather momentum to halt the downward trend of the proportion of employees aged 30 and under. This figure is currently 13.5% - a reduction of nearly 50% in seven years.”
NSAR, Annual Rail Workforce Survey 2023
Source: NSAR – Rail Industry Workforce Survey 2023
UK Rail workforce: Aged 30 and under and 50+
UK Rail workforce: Forecast retirement through to 2030
And far from all rail industry workers opting to stay in work until the state retirement age, the average retirement age within the rail industry is currently 62 – significantly lower than the state retirement age. If it continues to lose workers, on average, at this age, “the data indicates up to 30% of the current workforce could be lost and would require replacing by 2028”.
Source: NSAR – Rail Industry Workforce Survey 2023
A recently published study by legal firm Osborne Clarke evidences that 62 is the target retirement age amongst workers aged 35-55.2 It's crucial for the industry to take proactive steps to tackle this issue before it escalates further.
2 Osborne Clark: Providing for tomorrow today: understanding an ageing workforce https://www.osborneclarke.com/system/files/documents/23/06/30/Ageing%20workforce%20report.pdf
Moreover, 96% of those surveyed stated that they would need additional training to enable them to successfully do their job through to their intended retirement age. This training includes digital skills (as cited by 38% or respondents) and computer/technology-based skills (34%).
Source: Osborne Clarke - Providing for tomorrow today: understanding an ageing workforce
Top skills for additional training
38% Digital skills
34% Computer/technology skills
34% Administration, planning and organisation skills
32% Leadership and management skills
27% Communication skills
Source: Matchtech Candidate Survey 2023
In what skill set area, if any, will you need additional training in order to ensure you can do your job until your intended retirement age?
Cutting across all industries, from a STEM workforce perspective, research by Matchtech in Q4 2023, determined that only a third (36%) plan to retire in line with the state retirement age. And amongst the 14% who plan to retire before it, the average planned age is 58. In contrast, a further 16% don’t ever foresee retiring. Of additional note, 17% of STEM professionals aged 55-64 and 12% aged 65+, have yet to make plans for retirement.
STEM professionals: retirement plans
36% Plan to retire in line with the state retirement age
14% Plan to retire before the state retirement age
16% Don't foresee ever retiring
5% Had retired and have returned to work
30% Haven't thought about retirement yet
Source: Matchtech Candidate Survey 2023
Our recommendation
Not only do employers need to put strategies in place to successfully replace inevitably retiring skilled workers, but they also need to be delivering agile and effective upskilling to optimise the tenure of this sizeable and valuable worker cohort.