Urgent action to raise awareness of the needs of older workers and to encourage them to remain in the workforce is called for in a major study to be published today.
It warns that the Republic will lose competitiveness unless more flexible workplace arrangements are introduced for people aged 45 and over.
The study, by the National Economic and Social Forum (NESF), finds that few employers have structures in place to cope with an ageing workforce and says a change in attitude is required.
While other EU countries are discouraging early retirement by reducing pension entitlements, this option is not available in the Republic, it says, because the State already has one of the "least generous" social welfare pensions in Europe.
The study titled "Labour Market Issues for Older Workers", says the need to maintain adequate pensions cover for an ageing population is another reason why a number of EU countries are promoting longer working lives, the study says.
While the Republic currently has five people of working age for every pensioner over 65, the ratio will drop to 3-1 by 2025.
"Such changes are raising fundamental questions about the sustainability and future costs of pensions and other health and social services provision for those who are retired." The report highlights four main policy areas relating to older workers that require "priority attention":
Attitudes of employers.
Training.
Work-life balance.
Pensions/social security provision.
In a survey carried out for the study by the Economic and Social Research Institute, employers recognised the positive attributes of older workers.
Despite this, only 12 per cent of the respondents provided special supports aimed at workers over 45 and none provided partial or gradual retirement options.
"The findings suggest that the majority of companies do not have structures or practices in place to cope with an ageing workforce," the report says.
"Less than half of those surveyed had formal structured training for all workers, with only a very small number [8 per cent] actively encouraging participation by older workers.
"As the workforce will age considerably, particularly after 2006, awareness raising is urgently needed to be put in place now to adjust corporate culture, recruitment and employment practice, career paths, incentives and back-up programmes to support older workers to remain in the workforce longer."
Many older workers, it points out, did not benefit from free second or third-level education and tend to have lower qualifications than younger people.
It calls, "as a matter of priority", on the Department of Enterprise, Trade and Employment to put in place a strategy to implement the recommendations of the Task Force on Lifelong Learning.
