Hundreds of thousands of over-50s workers have been forced into retirement earlier than they planned since the start of the pandemic in 2020, new figures from the Office for National Statistics reveal.
Estimates suggest about a quarter of a million workers aged between 50-70 left or lost their jobs and have not returned to paid work.
About three-quarters (77%) of workers aged 50-60 left work earlier than they expected compared to 57% of those aged 60-70.
Stephen Lowe, group communications director at retirement specialist Just Group, said that the pandemic had reversed the historic trend for working later in life driven by policies such as rising State Pension Age.
“It’s concerning to see that many people have left the workforce earlier than they had expected because of the serious impact on their finances in both the short and the long term.
“Many are drawing on their own sources of funding with 44% of 50-60 year olds saying they are using savings or investments, 29% using private pension money which is often taken in lump sums, compared to 23% receiving State Benefits.
“Not surprisingly, people leaving work during the pandemic are more likely to report increased worries around cost of living increases – 52% compared to 44% who left work before the pandemic.
“It’s important that policies are put in place to encourage older workers to go back to work and to give them the support they need.
“A significant minority – one fifth of those aged 50-60 (22%) and a third (34%) of those 60-70 – said they had experienced age discrimination when looking for paid work.
“Those deciding to tap into their pensions and savings early in life should seek professional advice or free guidance, such as the Government-backed independent and impartial Pension Wise service, so they fully understand the implications.”
