Pension fears see more women staying in work

A RECORD number of older women are staying in work amid fears pension cuts have made it impossible for many to retire.

A total of 4.8million women over 50 are still working – up by 1.3million or over a third in the past decade.

The number of working women aged at least 65 has more than doubled in the last ten years to 507,000. Experts warned that hikes to the state pension age and the closure of many final salary schemes are forcing many to stay in work.

Sir Steve Webb, a former pensions minister who is now director of policy at savings firm Royal London, said: ‘There’s a set of people who can’t afford to retire – if you’ve not built up enough pension, you literally can’t afford to stop.’

Baroness Altmann, another former pensions minister, said: ‘Many women who would in the past have stopped work are now not doing so.

‘There are some people, especially women, who won’t have anything to fall back on ... and are feeling forced to work for longer than their health really allows.’

Some of this growth is likely to be driven by those who want to stay in work for longer as the public’s health and life expectancy improves, she added. The compulsory retirement age of 65 was abolished in 2011 by the Conservativeled government to give workers the freedom to carry on in a job if they choose to do so.

Baroness Altmann said: ‘ There are huge advantages – both for the individuals and society – if men and women who can work longer, and want to do so, are able to.

‘But this shouldn’t mask the fact that some who want to stop work- ing, who need to stop working, are unable to do so.’

Women have been hit by sharp rises in the state pension age over the past few years. As many as 3.9million women have to wait up to six years longer to get their pensions than they had planned for.

Meanwhile, final salary pension schemes have closed to new savings as ultra-low interest rates over the past decade have made them untenable.

Labour MP Neil Coyle, a member of the Work and Pensions select committee, said that the figures show more must be done to help older people cope in retirement. He warned the problem is particularly acute for those caring for someone else.

Mr Coyle said: ‘ We have an increasing group of older women who have caring responsibilities for grown-up disabled children – and also for parents with dementia – who are having to stay in work.’

The Department for Work and Pensions said: ‘As people live longer, healthier lives, we are supporting them to stay in the workplace if they choose to do so.’

‘Some who need to stop are unable to’