Bank of England chief blames workers taking early retirement for poor state of the economy
WORKERS taking early retirement are to blame for the poor state of the economy, a Bank of England chief says.
Catherine Mann, one of the bank’s rate setters, says it will cause tensions with younger generations who will ultimately pay the price.
Ms Mann said: “Who will bear the societal burdens of older workers who do not return to the labour market?
“If it is presumed that younger workers will pay through higher taxes, then intergenerational tensions could worsen”.
The Bank’s governor Andrew Bailey has already said older workers taking early retirement risk fuelling inflation by reducing the supply of labour and driving up wages.
Ms Mann made her comments in an essay published by the Resolution Foundation.
But they were attacked by Simon French, chief economist at Panmure Gordon, who said: “I’m not sure what blaming older workers achieves other than creating divisiveness.
“It’s a bit of a side show when it comes to what is really affecting the economy — bringing down inflation.
“That is the biggest problem at the moment and so these comments are a bit off beam.
“For the past 20 years the cohort of workers between 50 and 64 year olds have increased.
“It’s only since the pandemic has that flatlined largely due to ill-health or reappraising life choices.”
The Bank’s chief economist Huw Pill caused outrage last month saying people should just accept they are “worse off”.