The UK is bracing for a dramatic demographic shift that could reshape the very foundation of the nation’s labour market — yet the corporate world appears worryingly underprepared. A new report from financial services firm Canada Life has exposed a growing disconnect between awareness and action when it comes to the country’s ageing workforce.
According to the Building Longevity-Ready Workplaces in the UK report, the number of workers aged 50 and over is set to surpass half of the total workforce by 2030. This age group, predicted to contribute £730 billion to the UK economy, represents both an opportunity and a challenge. Yet only 12% of employers have a formal strategy to adapt to this seismic demographic change, despite 83% admitting longer working lives are now inevitable.
Incoming Canada Life UK CEO Lindsey Rix-Broom didn’t mince words, declaring the so-called “longevity megatrend” a transformational force:
“The longevity megatrend is shaping lives across the UK and beyond, transforming the makeup of our population and the way we live and work.”
And while half of employers concede that the structure of work will need to evolve into a better deal for older workers, few are taking real steps toward change. Most businesses remain locked into outdated employment models shaped by the “learn, work, retire” paradigm — increasingly detached from the modern realities of career fluidity, later-life retraining, and extended working lives.
Workplace inertia amid an ageing revolution
The study, which surveyed over 600 employers and 3,200 members of the public, reveals a worrying inertia in boardrooms across Britain. Almost a third (30%) of employers admit that an ageing workforce of over 50s poses a direct threat to their business within the next five years. Yet meaningful action remains the exception, not the rule.
Some employers are experimenting with limited initiatives:
- 41% are encouraging improved work-life balance
- 29% are beginning to value skills over formal qualifications
- 25% now offer flexible hours to carers
But these efforts are sporadic and insufficient when set against the scale of the challenge to boost skills for older workers. The report warns of a “ticking time bomb” as the UK’s labour force evolves faster than corporate culture or policy frameworks.
In stark contrast to this lack of planning, the appetite for prolonged economic participation among older workers is growing. A resounding 79% of working-age adults expect to remain in employment well into their later years. Almost half (42%) are contemplating retraining or launching second careers — a clear sign that the workforce of the future will be multigenerational, multidirectional and motivated by more than just money.
A call for coordinated support
There’s also a marked mismatch in perceptions around health and retirement. While half of employers cite physical decline as the primary driver behind early workforce exits, only 18% of employees agree. The real issue? A stark absence of support systems such as a 4 day work week. The majority of older employees — 58% aged 45–54, and 66% aged 55–64 — receive no health or protection benefits from their employer.
These are precisely the benefits older workers rank just behind salary and pensions in importance. And still, only 38% of employers list employee wellbeing as a top concern. This misalignment could jeopardise retention at a time when every skilled worker counts.
Yet there is room for optimism. Encouragingly, 68% of employers now recognise that they have a role to play in enabling longer working lives. Lindsey Rix-Broom believes this moment of reckoning offers an opportunity for real transformation:
“Building longevity-ready workplaces requires collaboration and meaningful dialogue between people, employers, advisers and policymakers. Getting this right is not only a practical necessity – it is a moral imperative and a pathway to unlocking the growth and potential of the UK’s workforce and, by extension, the wider economy.”
The bottom line
The Workers Union understands the future of work in Britain is older, more experienced, and more dynamic than many business leaders are currently prepared for. With a rapidly shifting demographic landscape and increased pressures on productivity, the private sector must urgently update outdated workplace structures, we have.
