By . Tamara Cohen, Political Correspondent . Pensions minister Steve Webb said the older generation of workers are a 'vast untapped talent' Millions of over-50s must be encouraged to stay in the job market with offers of flexible hours and careers advice, ministers say. The impact of an ageing population and falling birth rate, mean over the next decade there will be 700,000 fewer people aged 16 to 49 -  but another 3.7milllion people between 50 and pension age . Pensions minister Steve Webb said the older generation of workers are a ‘vast untapped talent’ and must be encouraged to stay in employment for longer, or lured back if they have retired early. He will appoint an older workers’ champion to ‘challenge misconceptions’ about giving jobs to older staff who ministers say could provide a huge boost to the economy. The ‘Fuller Working Lives’ programme announced today will extend flexible working to all employees straight away so older workers can combine employment with caring for relatives. In addition, job centres will pilot courses aimed at retraining older workers, and employers given advice on how to accommodate staff with certain health problems. A recent survey of 400 McDonald’s restaurants across Britain showed customer satisfaction was on average 20 percent higher when they employed staff aged 60 and over. Academics found older staff at the chain were more likely to empathise with customers, go to extra mile in serving them, and could use their life experience to help mentor younger staff. Around 60 percent of people in the UK aged 55 to 64 are in work and the number is growing. Older workers saw far fewer job losses during the recession in Britain than younger workers did, which experts say is a vote of confidence in their skills and hard work. But Mr Webb said in some other countries the employment rate for this age group is around 70pc or higher, and believes Britain should aim to raise its game. Incentive: The 'Fuller Working Lives' programme announced today will extend flexible working to all employees straight away so older workers can combine employment with caring for relatives . ‘Older workers have a huge amount to bring to any workforce and are a vast untapped talent’, he said. ‘We . are living longer and can expect many more years of healthy life. It’s . great news – but it’s something that as a society and as an economy we . need to respond to. ‘I am . determined that we boost our support for older workers and help . employers challenge outdated perceptions to see the real strengths of . this important section of the workforce.’ Mr . Webb is the minister behind the decision in this year’s budget to allow . people to cash in their pension pot from the age of 55. Currently they can take a small lump sum when they retire but the rest must be invested in an annuity -  a product which gives pensioners a guaranteed annual income for the rest of their life. He said having the flexibility to cash in part of their pension while continuing to earn money would also help people have a ‘gradual retirement’. Two groups of pensioners are at the heart of the government’s drive to get older people back to work. One is women in their 50s who have taken time out of work to help with caring responsibilities, for their elderly parents or grandchildren, and have found it difficult to return. Mr Webb said they could benefit from more flexible hours. The second is men in their 50s who have taken sick leave or incapacity benefit from work, who can no longer do their previous job for health reasons but could be retrained to do something else. Caroline Abrahams of the charity Age UK said the measures were ‘essential’ to stop an older generation, who are living longer, being excluded from work and struggling for money. She said: ‘Too many older people still find themselves locked out of the workplace despite overwhelming evidence showing they are at least as productive as their younger counterparts and make an invaluable  contribution in terms of their experience, knowledge and skill. ‘Nearly half of all unemployed people aged 50 and over have been out of work for more than a year, with many in this age group finding it incredibly hard to get another job.’ It is already illegal to sack a person for turning 65. The state pension age will rise to 66 from 2018 and to 67 from 2026.
In next decade there will be 3.7m more people between 50 and pension age .
Pensions Minister Steve Webb says older generation must be encouraged to stay in work, or lured back from early retirement .
Fuller Working Lives programme to extend flexible working to all employees .
Will enable older workers to combine employment with caring for relatives .
Around 60 percent of people in the UK aged 55 to 64 are in work .
By . Tamara Cohen, Political Correspondent . Pensions minister Steve Webb said the older generation of workers are a 'vast untapped talent' Millions of over-50s must be encouraged to stay in the job market with offers of flexible hours and careers advice, ministers say. The impact of an ageing population and falling birth rate, mean over the next decade there will be 700,000 fewer people aged 16 to 49 -  but another 3.7milllion people between 50 and pension age . Pensions minister Steve Webb said the older generation of workers are a ‘vast untapped talent’ and must be encouraged to stay in employment for longer, or lured back if they have retired early. He will appoint an older workers’ champion to ‘challenge misconceptions’ about giving jobs to older staff who ministers say could provide a huge boost to the economy. The ‘Fuller Working Lives’ programme announced today will extend flexible working to all employees straight away so older workers can combine employment with caring for relatives. In addition, job centres will pilot courses aimed at retraining older workers, and employers given advice on how to accommodate staff with certain health problems. A recent survey of 400 McDonald’s restaurants across Britain showed customer satisfaction was on average 20 percent higher when they employed staff aged 60 and over. Academics found older staff at the chain were more likely to empathise with customers, go to extra mile in serving them, and could use their life experience to help mentor younger staff. Around 60 percent of people in the UK aged 55 to 64 are in work and the number is growing. Older workers saw far fewer job losses during the recession in Britain than younger workers did, which experts say is a vote of confidence in their skills and hard work. But Mr Webb said in some other countries the employment rate for this age group is around 70pc or higher, and believes Britain should aim to raise its game. Incentive: The 'Fuller Working Lives' programme announced today will extend flexible working to all employees straight away so older workers can combine employment with caring for relatives . ‘Older workers have a huge amount to bring to any workforce and are a vast untapped talent’, he said. ‘We . are living longer and can expect many more years of healthy life. It’s . great news – but it’s something that as a society and as an economy we . need to respond to. ‘I am . determined that we boost our support for older workers and help . employers challenge outdated perceptions to see the real strengths of . this important section of the workforce.’ Mr . Webb is the minister behind the decision in this year’s budget to allow . people to cash in their pension pot from the age of 55. Currently they can take a small lump sum when they retire but the rest must be invested in an annuity -  a product which gives pensioners a guaranteed annual income for the rest of their life. He said having the flexibility to cash in part of their pension while continuing to earn money would also help people have a ‘gradual retirement’. Two groups of pensioners are at the heart of the government’s drive to get older people back to work. One is women in their 50s who have taken time out of work to help with caring responsibilities, for their elderly parents or grandchildren, and have found it difficult to return. Mr Webb said they could benefit from more flexible hours. The second is men in their 50s who have taken sick leave or incapacity benefit from work, who can no longer do their previous job for health reasons but could be retrained to do something else. Caroline Abrahams of the charity Age UK said the measures were ‘essential’ to stop an older generation, who are living longer, being excluded from work and struggling for money. She said: ‘Too many older people still find themselves locked out of the workplace despite overwhelming evidence showing they are at least as productive as their younger counterparts and make an invaluable  contribution in terms of their experience, knowledge and skill. ‘Nearly half of all unemployed people aged 50 and over have been out of work for more than a year, with many in this age group finding it incredibly hard to get another job.’ It is already illegal to sack a person for turning 65. The state pension age will rise to 66 from 2018 and to 67 from 2026.
Pensions minister Steve Webb said the older rate, mean over the next decade there will be 3.7milllion people between 50 and pension age . talent’ and must be encouraged to stay in ‘Fuller Working Lives’ programme announced today will extend flexible working to all employees employment with caring for relatives. In Around 60 percent of people in the UK aged 55 to 64 are in work and the number is growing. Older combine employment with caring for relatives .