You are here: Home - Mortgages - Remortgage - Understanding -

Working until you drop: older generations retiring later

Written by:
Good news for those who like their jobs; new government statistics reveal that we are working longer than ever.

The statistics show that the average age of exit from the workplace has increased from 63.2 years in 1997 to 65.1 today. For women, the rise is even greater, with the average woman leaving the workplace at 60.8 in 1997 and at 63.6 today.

The rates of employment for people aged 50 and over is also increasing. In 1984 just 55.8% of this age group were in work and this dropped to 4.9% for the over 65s. Today 71.2% of the 50-64 age bracket are in work, and 10% of the over 65s.

The research also showed that the employment rate gap between 50-64 year olds and 35-49 year olds is closing, suggesting employers may be throwing off some of their former prejudices about older workers.

Partly this is attributable to the Equality Act of 2010, which made it unlawful for companies to discriminate against employees or jobseekers based on age. However, the levels of older age employment have continued to rise steadily long after the legislation was introduced. Changing state pension age has also influenced the statistics. The rise in female working lives maps the rise in state pension age from 60 to its current level of 63 and nine months.

This will go some way to helping the current pensions crisis. The later people continue to work, the longer they have to build up a retirement pot and the less time that pot has to last.

Tom Selby, senior analyst at AJ Bell, said: “Anyone who thinks retiring at 65 is a scary thought is in for a nasty shock. The rise in average retirement ages is only going to accelerate in the decades to come as the state pension age increases further and the number of people retiring with generous defined benefit entitlements falls away.

“We will also see more people working longer, either full-time or part-time, in order to supplement their retirement income. For some this won’t be a problem, but for those in more strenuous or physically demanding roles the thought of retiring later will be difficult to stomach. But the stark reality is that, if life expectancy keeps going up, many will be staring a retirement age of 70 or older square in the face.

“This isn’t inevitable, of course, and the more you can save into a pension early in your career the better chance you’ll have of stopping work at a time that suits you.”


There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

Coronavirus and your finances: what help can you get in the second lockdown?

News and updates on everything to do with coronavirus and your personal finances.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Lenders improve mortgage terms

Nationwide Building Society has chopped the rate on its two-year fix, which comes with no product or valuation fees.