KRS claim half of over 50s made redundant remain unemployed
Nearly half of people over 50 who have been made redundant in the past three years have yet to find a new job a new report reveals.
Two out of three people in this age group have also been forced to take a pay cut when they do find a new job according to the research by Consumer Intelligence on behalf of Key Retirement Solutions.
The worst affected group is the over 55s, with 60% still without work after three years and 72% taking pay cuts said the over 55s adviser.
The report also claims that people under the age of 50 who have been made redundant in the past three years have also faced employment problems, however only 33% have failed to find another job, while 53% have had to take pay cuts with 23% admitting to substantial drops in salary.
Findings revealed 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.
In a striking contrast it was found that approximately 51% of 18 to 24-year-olds made redundant in the past three years found another job within one to three months.
Those under under-50 made redundant in the past three years have also suffered but only 33% have failed to find another job, with 53% taking pay cuts and 23% admitting to substantial drops in salary.
However nearly 70% of those over 50 who are employed are not worried about the risk of redundancy over the next 12 months, reducing to 63% for the under 50s.
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.
It stated that around one in five equity release plans were taken out before the age of 65 in the three months to June 30th this year. It also 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 the company 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.”