The latest data from the Office for National Statistics (ONS) indicates a slow recovery in the employment rate among workers aged 50 to 64.
Despite a slight increase over the past year, the current employment rate of 71.3% still lags behind pre-pandemic levels of 72.5% in 2019.
Alongside this, there has been a notable decline in the number of older workers choosing to retire, possibly due to challenging economic conditions.
Stephen Lowe, group communications director at retirement specialist Just Group, said: “A recovery in employment among workers aged 50-64 seems to be slowly emerging with a small increase over the past year perhaps driven by the cost of living crisis causing more older workers to seek work to bolster their financial position both in the short-term and looking ahead to retirement.”
According to Lowe, this trend may explain why the percentage of older workers leaving their jobs to retire decreased from 37% in 2022 to 34% in 2023. He stated that the “great unretirement” appears to be gaining momentum. “It suggests people nearing retirement are keen to continue working to build up bigger pension savings and protect against financial threats like the rising cost of everyday living.”
The data also revealed that approximately 460,000 individuals between the ages of 50 and 64, who are currently economically inactive, express a willingness or desire to work. “There is clear potential to be harnessed among this generation of silver workers who bring significant experience to the workforce. Nearly half a million economically inactive older workers say they would like a job so evidently a keen and willing talent pool exists for employers,” said Lowe.
However, the gradual uptick in employment rates for this age bracket is a source of concern. “The slow recovery in employment for this age group is concerning because this is the time of life where people tend to focus on retirement planning and extra pension saving. If they are struggling to find jobs that will have a knock-on effect on both their own retirement plans and potentially mean more State support will be needed,” Lowe cautioned.
