This blog was contributed by Giselle Cory, Senior Research and Policy Analyst at the Resolution Foundation.
We know that many people want to work into older age – yet many do not. So what stops them? For some, caring for family or friends can make paid work near impossible.
For others, their own poor health can be a barrier. And for families on low incomes, it may be that work simply doesn’t pay enough to warrant continuing. This can lead to trouble for families who don’t have the savings they need to maintain decent living standards into retirement.
Universal Credit (UC) the government’s flagship welfare reform, could address some of these barriers. For example, under UC low income households will receive an income boost designed to make work pay.
This system could be powerful in ensuring older people have the incentives they need to remain in work. Yet a new report from the Resolution Foundation shows that while UC offers some benefits to older workers, it also misses an opportunity to raise older people’s incentives to stay in a job, or return to work. Without these incentives, low paid work simply does not add up.