Today’s labour market figures show a continued rise in economic inactivity among workers aged 50-64 with an extra 252,000 leaving the workforce compared to the same period four years ago.
A total of 3.5 million people in this age group are now economically inactive as of Jun-Aug 2023 compared to 3.2 million in Jun-Aug 2019 (the economic inactivity rate has risen from 25.5% to 26.7% over the same period). Economic inactivity is underpinned by factors such as early retirement, long-term sickness and looking after family so the data reflects fears that many older workers are being forced into retirement due to factors beyond their control, with serious financial and personal consequences.
A survey from retirement specialist Just Group of over 1,000 retired and semi-retired people aged 55+ found that nearly half (45%) retired earlier than they had expected with the majority of these driven out of the workforce due to factors beyond their control.
Of those that retired earlier than expected, a third (33%) said this was because of ill-health or physical impairment. A further 15% were either made redundant or could not find a job while one in 10 (10%) said they retired earlier than expected to provide care for a family member.
Stephen Lowe, group communications director at retirement specialist Just Group, commented: “Today’s figures illustrate that not everyone keeps working until they collect the State Pension. For some people they can choose when they retire but a significant number don’t have that luxury.
“Our research demonstrates that nearly half of retirees over the age of 55 are leaving the workforce earlier than expected with many driven out due to factors beyond their control. It’s a harsh reminder that people cannot bank on being able to choose the exact point when they retire and in those circumstances a back-up financial plan is extremely valuable.
“It also raises questions about how much help is available for older workers looking to get back to work and whether the government could do more to bring their skills and experience back into the workforce to help drive economic growth.”
