One of the lessons learned during the pandemic is that it is perfectly possible for a large swathe of us to work from home. Will this lead to those currently in their 50s and 60s extending their working lives and securing a more comfortable retirement… or negotiating a better work/life balance with their employer? By Tony Watts OBE

Some new research from the Office of National Statistics has confirmed something which had become abundantly clear over the last year and a bit: working from home for part (or even all of the time) is not only feasible for many but can actually offer some benefits… especially for older workers.

In fact, says the ONS, many people now in their 50s and 60s would consider retiring later if that option was to remain open for them post-pandemic… boosting the economy as well as making their retirement significantly more comfortable.

Not having to make the daily commute, improving their work/life balance, being able to combine other aspects of their lives more conveniently (not least caring responsibilities), it’s easy to see the appeal. And while not everyone has found making the transition to video conferencing, losing the daily contact with colleagues and working out of the spare bedroom, all previous surveys show that older workers have coped far better.

Younger people are more likely to miss the social contact and also lose out on the mentoring they would normally receive. Workers who switched to working from home during the pandemic were most likely to be in management and professional occupations – in other words, the highest earners.

The ONS survey makes clear that, as well as allowing people to retire later, the option of being able to work from home could allow a large number of people in their 50s and 60s to return to the workforce. They say that more than 5% could be added to UK gross domestic product (GDP) if those aged 50 to 64 were employed at the same level as 35 to 49-year-olds.

Moreover, previous research has shown that if everyone in the workforce postponed their retirement it would boost the GDP by 1% for every year delayed.

Flexibility the key

Inevitably there are caveats. Not every job is suited to home working, and the lower paid are less likely they are to be able to take advantage of it.

As more employers reconfigure their employment practices, the potential for “hybrid working” is focusing their minds: allowing or even encouraging staff to work part of their time in the office and the rest of the time from home. This sort of flexible working can not only significantly reduce their workspace requirements but could lead to renegotiating weighting packages.

From an older employee’s perspective, it also opens up the opportunity for discussions with their managers on other types of flexible working that could work well for both of them: part time working, for instance, which would allow them to achieve a better work/life balance, especially if health issues are a factor, or assume caring responsibilities – again allowing them to extend their working life.

How much is enough?

Whether you are considering a delay to retirement or reducing your hours and income, a key component of your planning should always be pension provision: ensuring that you are saving enough for the retirement you hope for.

Using your RetireEasy LifePlan to test out different scenarios can tell you at a glance the impact any potential changes will have on your income throughout your retirement years and help you make an informed decision.