A shortage of workers will mean people will have to stay in jobs until they are at least 70, ministers claim.
Employers are warned they must change their attitudes towards older workers, who ‘already live here and their numbers are growing’.
The government says Britain is ‘running out of workers, with 13.5million vacancies predicted in the next decade but only 7million young people due to leave school and college.
Ministers believe the gap can be filled by older people staying in the workplace for longer.
Around 22 per cent of people are aged over 60, but by 2035 it is expected to rise to 28 per cent.
Pensions minister Steve Webb said: ‘People have often said, 'how are we going to tackle ageist attitudes amongst employers?’ The demographics are going to sort that out for us.
‘Over time there will be a whole set of jobs where employers need experienced older workers and a firm that doesn’t change its attitude to older workers will be left behind,’ he told the Daily Telegraph.
A new guide, Employing Older Workers, has been produced by the government to encourage bosses to keep experienced staff.
It says: ‘Older people are the main untapped source of labour: unlike migrants, they already live here, and their numbers are growing.
‘People are living and keeping fit for longer: most of today’s 65-year-olds will live beyond 80, and some will live beyond 110.
‘Older workers are increasingly
looking to extend their working lives, with over 50 per cent of workers
aged 55 plus planning to work beyond the state pension age.’
The report highlights how some firms have reaslied the benefits of older staff.
McDonald’s reports 20 per cent higher performance in outlets where workers aged over 60 are employed as part of a ‘multigenerational workforce’.
David Fairhurst, McDonald’s UK & Northern Europe, said: 'Changing demographics in the workplace mean that later life workers are now the fastest growing age group in the labour market.
'Yet despite the growing numbers of mature workers, their contribution to business and the wider economy often goes unsung.
'It might surprise people to learn that at McDonald’s we employ over 1,000 people aged 60 and above. These employees play an important role in our business and, as the research shows,
they make a huge impact on customer satisfaction.'
Mr Webb insisted he did not want to force people to work into their seventies and beyond.
He added: ‘This isn’t “work ‘til you drop”. This is actually enabling people to carry on and in most cases that is good for their wellbeing as well.
‘It is not the case that if we enable firms to employ older workers this just shuts out the young. It keeps experienced productive workers in the workforce and that is good news.’
Employers are warned they must change their attitudes towards older workers, who ‘already live here and their numbers are growing’.
The government says Britain is ‘running out of workers, with 13.5million vacancies predicted in the next decade but only 7million young people due to leave school and college.
Ministers believe the gap can be filled by older people staying in the workplace for longer.
Around 22 per cent of people are aged over 60, but by 2035 it is expected to rise to 28 per cent.
Pensions minister Steve Webb said: ‘People have often said, 'how are we going to tackle ageist attitudes amongst employers?’ The demographics are going to sort that out for us.
‘Over time there will be a whole set of jobs where employers need experienced older workers and a firm that doesn’t change its attitude to older workers will be left behind,’ he told the Daily Telegraph.
A new guide, Employing Older Workers, has been produced by the government to encourage bosses to keep experienced staff.
It says: ‘Older people are the main untapped source of labour: unlike migrants, they already live here, and their numbers are growing.
‘People are living and keeping fit for longer: most of today’s 65-year-olds will live beyond 80, and some will live beyond 110.
The number of over-60s is expected to rise sharply in the next two decades, reaching 17.5million by 2035
McDonald's said output was 20 per cent higher in restaurants where staff included over-60s
The report highlights how some firms have reaslied the benefits of older staff.
McDonald’s reports 20 per cent higher performance in outlets where workers aged over 60 are employed as part of a ‘multigenerational workforce’.
David Fairhurst, McDonald’s UK & Northern Europe, said: 'Changing demographics in the workplace mean that later life workers are now the fastest growing age group in the labour market.
'Yet despite the growing numbers of mature workers, their contribution to business and the wider economy often goes unsung.
'It might surprise people to learn that at McDonald’s we employ over 1,000 people aged 60 and above. These employees play an important role in our business and, as the research shows,
they make a huge impact on customer satisfaction.'
Mr Webb insisted he did not want to force people to work into their seventies and beyond.
He added: ‘This isn’t “work ‘til you drop”. This is actually enabling people to carry on and in most cases that is good for their wellbeing as well.
‘It is not the case that if we enable firms to employ older workers this just shuts out the young. It keeps experienced productive workers in the workforce and that is good news.’