The CIPD is calling for a national reset in how employers and the government approach adult skills training, warning that without a serious investment in reskilling, millions of older workers risk being left behind by rapid labour market change and falling short on financial security in later life.
 
Its new report, Lifelong Learning in the Reskilling Era: From Luxury to Necessity, reveals a concerning decline in employer-led training and a lack of career development opportunities for older workers, despite this group forming a growing share of the UK workforce.
 
The professional body warns that older workers face disproportionate risk from so-called megatrends, particularly AI, net zero transitions, and digital automation, which are reshaping jobs and displacing roles at pace. New estimates show that 6.3 million UK jobs will be impacted by the net zero transition by 2050, 2 million jobs could be displaced by technology by 2035 and almost a third of roles will significantly change due to AI.

Yet, access to reskilling opportunities diminishes with age. Only 47% of workers over 55 feel their current role offers good skills development compared to 73% of those aged 18–24.
 
This is happening alongside troubling pension trends: nearly 45% of UK workers aren’t contributing to a pension, according to new government data. That suggests many older employees could be working longer without adequate income in retirement, making the ability to retrain and stay employed even more critical.
 
Career Options Narrowing for Over-55s

Despite often possessing untapped capabilities, older workers face limited career mobility. The report finds just 24% of over-55s believe their role offers good prospects for advancement, compared to 39% overall.
 
More than a third (37%) say they have skills that are underused and could apply to more demanding roles.
 
CIPD’s Skills Adviser Lizzie Crowley warned the outlook could deteriorate further unless urgent action is taken. She says, “Our analysis, and latest projections from Government on a pensions crisis, paint a bleak picture with profound implications for individuals as well as economic and social policy. If changes to retirement age and the pensions crisis mean we’re all going to work for longer, we urgently need to usher in a new era of reskilling to help people develop into new roles and sectors.”

Crowley adds, “The reskilling imperative isn’t just an economic necessity, it’s a social contract. By reimagining how we support people to learn and adapt throughout their lives, we can build a more resilient, equitable and prosperous future for everyone.”
 
The report also highlights that employer spending on training has dropped 27% over the past decade, from £4,095 per trainee (2011) to £2,971 (2022). Public spending on adult learning has fallen by 31% in real terms since its 2003/04 peak. This erosion of investment in skills poses both a talent retention challenge and a long-term workforce productivity risk especially as many organisations look to fill specialist gaps or meet ESG and digital capability targets.
 
CIPD Recommends boosting training budgets and embedding upskilling and redeployment opportunities across roles.
 
It also suggests offering mid-career development conversations to support workers over 50, increasing access to flexible learning formats (e.g. modular or micro-credentials) and providing flexibility around hours and location to allow employees to balance learning with work or caregiving.

The responsibility of the Government now includes introducing individual learning accounts and training vouchers to support self-directed lifelong learning as well as providing paid educational leave to allow workers to upskill or retrain without forgoing income. It is also important to ensure learning pathways are inclusive and accessible to all age groups.
 

Suzanna Kemal, Head of HR at Reward Gateway | Edenred, commented on the findings, emphasising that inherently human skillsets are the ones that need cultivating, “The latest CIPD report highlights the ever-changing landscape of work, and exactly why organisations should make the effort to continuously train, and upskill, their employees. 

“The number of UK jobs are forecast to increase by 2.6m by 2035, but we must ensure that there are employees who are equipped, and confident, with the skills they need to fulfill these roles. It is no surprise that technological change is one of the megatrends highlighted, but this is not a threat to existing roles. Rather, organisations should help their employees leverage AI and other tools to bring in efficiencies, rather than seeing it as a replacement for their workforce. 

Kemal adds that, “Inherently human qualities, like creativity, critical thinking and resilience, can never be replaced. But it’s up to businesses to recognise this, and how valuable their diversified workforce is, not only to accomplish certain KPIs but for culture and wellbeing in the workplace.”

With the workforce ageing and younger talent pipelines thinning, employers must take a more strategic, inclusive approach to skills development. The reward function has a pivotal role in designing benefits, recognition, and development pathways that support not just retention but long-term resilience and financial wellbeing.
 
Older workers bring experience, loyalty, and adaptability. But without investment in training and development, many risk being locked out of career progression or pushed out of the workforce entirely at a cost to individuals, businesses, and society.