State pension age increase forces people born before this date back to work
A state pension age increase is pushing 750,000 over 50s - born before 1974 - back into work. The number of 65-year-olds employed has risen from 16.9 per cent back in 2014 to an eye-watering 40 per cent in 2024, data and research has this week found.
Mark Screeton, CEO of SunLife, warned: "If the state pension age were to rise to 68 by the early 2030s rather than 2044-46 as currently planned, millions could be left struggling with no private pension savings to fall back on."
Mr Screeton added that while some older people can work until 68, many face "real challenges" remaining in the workplace past 50. This could have knock-on effects for families relying on grandparents for childcare support.
READ MORE Drivers parking next to kerb urged to follow little-known unwritten 'rule'
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown said: "The pandemic had a huge impact on over 50s workers, who exited the workplace in droves. Whether that be through redundancy or retirement, it not only left employers with an experience gap, it also left many older workers with a hole in their retirement planning.
"Leaving the workforce early not only means fewer contributions being paid into a pension, it’s also likely that people start drawing that pension earlier, which can put it under strain. This latest data shows some stabilisation, with the employment rate for those aged between 50-64 hitting 70.9 per cent.
"There’s every chance we will see this rate start to nudge upwards again in the coming years, especially as we see further increases in state pension age." The Labour Party government has legislated for an increase from 66 to 67 in 2026-28 and to 68 in 2044-46.
However, the timing of the rise to 68 is in doubt and will be looked at by an independent review after the next election, according to Fidelity International, a pension expert website and provider.