The Midlife Crisis is something that many people expect to experience in their lifetime. It is a transition of identity and self-confidence occurring around our 40s to 60s. In this year’s Spring Budget, the Chancellor discussed his plans to encourage those over 50 to extend their working lives. One method to do this is the Midlife MOT which was launched into the DWP’s job centre process to help older workers assess their skills and provide guidance for financial planning. The idea was that the MOT would increase confidence which would encourage those over 50 to find their way back into the job market, but this is a rather tenuous link.

There is no harm in ensuring older generations are financially resilient and have a plan for the future, the issue lies with the uncertainty concerning the assessment of worker’s skills.

Many insurance and financial service companies, such as Aviva and Legal & General, have adopted their own Midlife MOT tools. This might demonstrate that the design of the Midlife MOT is now more focused on pensions rather than trying to help older generations find work. It could be argued that this causes the MOT to be misplaced as the DWP often works with those on employment benefits who are trying to find work to ensure they can support their households, especially in these unprecedented times with the Cost of Living and Housing Crisis. This cohort, therefore, potentially does not have things like an estate or other forms of wealth which can be contributed to a pension, meaning when they use the Midlife MOT, they may feel more pressure and stress instead of the confidence it is suggested to boost.

There is no harm in ensuring older generations are financially resilient and have a plan for the future, the issue lies with the uncertainty concerning the assessment of worker’s skills. When first reading about the MOT, it appears to be a way for older generations to find new career paths through their skillset and help those struggling to find employment. The government website explicitly states that it helps break down barriers in the labour market. The MOT is broken down into a trilogy: Work, Money and Health, however, with a deeper investigation it could be recognised as a financial planning tool.

Another issue of the Midlife MOT is the aftermath and window dressing. It states that it prioritises helping workers assess their skills but there is little focus on what to do with their skills and no real additional training or support to help participants find employment. In other words: it opens a door that does not incentivise workers to find work. In recent years, with policymakers’ volatility, DWP job centres have needed to be agile in their response. As a consequence, many job coaches are potentially too overworked to provide the training and support that is required of them. This brings up questions on the utilisation of the Midlife MOT in job centres and its effectiveness in helping reach their objectives and targets to get people back into work.

Overall, this all suggests that whilst the budget has set out to encourage those over 50 to get back into the workplace and prolong their working lives, the measures put in place are potentially not fit for purpose. It could be argued that more funding within the Department of Work and Pensions needs to be allocated towards training older workers and providing more in-depth support relating to the workplace to help the government reach their goal.

Why is this financially based MOT only targeted at older generations? If there is such a heavy focus on financial resilience, should it also apply to all generations? There is no minimum age to start considering financial management and pensions so the information within this MOT would be useful, particularly to younger workers who may have little knowledge of their pension funds or may not have considered them at all. Why shouldn’t there be equality when it comes to understanding personal finances? With the new wave of the Quarter-life Crisis, an MOT for the younger generations could provide confidence in their future: a potential solution for their Crisis. Within the many Midlife MOT evaluations, many questions are broad and generic with no particular specification on age.

Could this imply that it may be better to rebrand the Midlife MOT to a general Annual MOT and market it to all generations?

Or to just present the current Midlife MOT more clearly?

Sonya Knight | ADF Comms Team

Read the companion piece to this editorial here

To respond and/or for more information, please contact the ADF Comms Team at: [email protected]