According to research by the Centre for Ageing Better, ageism seems to be rife in the workplace. Their report found more than a third of 50 to 70-year-olds feel their age is a disadvantage to them when applying for jobs.
I’ve heard numerous stories about their challenges in finding work through my work at Startup School for Seniors - an online programme that supports over 50s. It’s no wonder that so many individuals have turned to self-employment - whether through a genuine desire to work for themselves or as a last resort. But there are ways to build confidence and combat ageism and I’ve seen individuals across our cohorts achieve this. After completing the course, many of them recognise the value of their lived and work experience, proving that age isn’t a barrier to success.
Here are a few things you can do to put yourself in the best position for employment over 50.
The advantage of soft skills
Skills like time management, adaptability, and problem-solving are now highly sought after in the modern workplace. It’s crucial to understand that these skills, which you might take for granted, can give you a competitive edge. Particularly in environments where you have younger colleagues who’re yet to gain that life experience.
Building your skillset for free
Volunteering allows you to reframe your experience and skills to see how your work makes a positive difference. I’ve close friends who have regained their sense of self-worth through volunteering at their local Food Bank. For many older people, it can act as a stepping stone to how you consider your future self. Rather than thinking about the past and what you may have left behind, you can think about what you enjoy and what you’re good at. This could be something that you never imagined you could derive an income from.
You can find voluntary roles via Reach Volunteering or The National Council for Voluntary Organisations (NCVO).
Embracing technology
Fear of technology is the last reason anyone over 50 should feel held back from thriving at work. We invented the internet, after all! Most software is easier to use than ever, and is designed to help us become more efficient and save valuable time.
If you need help keeping up with the latest technology and feel this is holding you back, there are numerous free and low-cost courses available.
Discover courses via Udemy, Future Learn, or the National Careers Service.
Building confidence
Confidence is a significant factor in overcoming ageism and returning or remaining in the workplace for many older individuals. You can build confidence by recognising and owning your strengths and upskilling on your weaknesses. This isn’t just a strategy, but a mindset that can help you shift the narrative from negatively being about your age to the positives of your experience and value.
Working over 55 and contributing to a pension
When it comes to reframing your future life, it’s important to consider your financial goals as well as your personal ones. You can access workplace or personal pensions after 55 (rising to 57 in 2028) and your State Pension, if you’re eligible from 66 (rising to 67 in 2028). If you’re still working beyond 55, then you might want to consider continuing to pay into your pension.
If you’re in the fortunate position to not need to withdraw anything at 55, and can leave your pension invested for longer, it means it has more potential to hopefully grow and continue to compound. However, you might also want to withdraw some of your pension pot, for example to pay off some debt or for home renovations.
If you do start withdrawing, there are some rules to consider particularly around allowances and tax.
Remember your annual allowance - pension contributions are capped at £60,000 or 100% of your income (for the tax year 2024/25). After that, you won’t be able to receive tax relief on your contributions.
Watch out for the money purchase annual allowance (MPAA) - once you’ve started withdrawing money from your pension, your annual allowance is reduced to £10,000 a year (for the tax year 2024/25).
Don’t forget the power of compounding - withdrawing from your pension early means your money will have less time to grow and continue to compound. It’ll also reduce your future pension earnings and could push you into a higher income tax band.
Don’t forget about your tax-free lump sum - if you have a defined contribution pension, you can withdraw the first 25% of your pension pot as a tax-free lump sum. Or you can draw down multiple smaller lump sums as and when you need it. Just remember that after the 25% tax-free amount, any withdrawals are subject to income tax.
Consider all of your withdrawal options - depending on your financial needs, you can mix withdrawal options and use a few together. Learn more about accessing the money in your pension pot.
Read more about taking your pension at 55 and working.
Risk warning
As always with investments, your capital is at risk. The value of your investment can go down as well as up, and you may get back less than you invest. This information should not be regarded as financial advice.
Suzanne Noble is a serial entrepreneur and the Co-Founder of the award-winning Startup School for Seniors, an online programme that supports over 50s to turn an idea into a business or grow their existing business’s trading income. Featured on BBC News, the Telegraph, the Times, Buzzfeed, amongst others, Suzanne wants to support those over 50 to manifest the life they desire.
