Britain's economy is losing £31billion annually as workers aged over 50 leave the workforce prematurely in a blow to Chancellor Rachel Reeves's fiscal agenda.
The Labour Government has prioritised economic growth since returning to Number 10 last July, however older Britons quitting work may potentially hinder these ambitions ahead of its forthcoming Industrial Strategy.
Fresh analysis from the Standard Life Centre for the Future of Retirement reveals that nearly one in three employees in crucial high-growth sectors are aged 50 or above, with 440,000 departing these industries each year through early retirement or other exits.
The think tank's report warns that without immediate intervention to retain and support this experienced workforce, the government's plans for economic expansion, innovation and regional development face serious jeopardy.
Over 50s leaving the workforce is hurting the UK economy
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Some 11.1 million people employed across eight government-identified growth sectors, including 3.4 million workers aged over 50 and 450,000 over 65.
Furthermore, data found that the proportion of older workers reaches 38 per cent in defence and 36 per cent in advanced manufacturing.
These sectors have aged dramatically since the early 1990s, with the average worker now 44.6 years old compared to 37.6 in 1991 - a seven-year increase that exceeds the national workforce average of 43.8 years.
Every industrial strategy sector surpasses national rates for early retirement before state pension age, with many also experiencing substantial losses to ill health or other non-retirement factors.
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Patrick Thomson, the head of Research Analysis and Policy at the Standard Life Centre for the Future of Retirement, outlined the consequences for the UK economy.
He explained: "Most of the workers who will determine the success of the UK's Industrial Strategy are already part of the workforce.
"Our economic future, driven by these high-growth sectors, rely heavily on the experience of over 50s yet we're at risk of letting them slip away."
He warned that failing to act now to help older workers remain in employment could "risk stalling growth before we've even switched on the engine".
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Over 50s leaving the workforce could hit the economy hard
GETTYFurthermore, the analyst emphasised that supporting longer working lives is "essential for a fairer, more resilient society in which people can work for as long as they want or need to in order to save for a decent quality of life in retirement."
Thomson added: "The incoming Industrial Strategy needs to work for everyone and it is not just about new entrants, it's about the millions of people already doing these jobs who have long been the backbone of our industries."
The report outlines several policy recommendations for the forthcoming Industrial Strategy and sector workforce plans to address the needs of over-50s workers.
These include introducing more flexible working arrangements and enhanced job design to enable longer, more satisfying careers, expanding access to occupational health services and workplace support for those managing health conditions, and improving the availability of midlife training, career guidance and financial advice to help workers plan and adapt their careers.
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