MILLIONS OF WOMEN FORCED TO WORK TILL THEY DROP
THE number of over50s in work has hit a record high as millions of women are forced to delay plans to retire.
For the first time, there are more than ten million men and women over the age of 50 employed in the uK, the Office for National Statistics said. The surge in older workers has been driven by an increasing number of women working into their sixties, fuelling fears many are hanging on to jobs because they cannot afford to retire.
The trend has helped push employment in Britain to record levels above 32million.
Pension experts last night warned that millions now ‘inevitably feel they are being forced to work themselves into the ground’.
It is thought that in future, working beyond the age of 70 will be the norm.
However, ministers insisted that remaining in work for longer is better for our health and shows employers are increasingly recognising the value of older and more experienced staff.
While the number of over-50s in
work rose by 184,000 or 1.9 per cent last year, the number of 18 to 24-yearolds in employment fell by 67,000 or 1.9 per cent.
There are now 4.7million women over 50 in work, including 454,000 over 65, and just over 5.3million men.
The Office for National Statistics (ONS) said total employment rose by 321,000 last year to 32.15million. That included an increase of 88,000 in the final three months of 2017.
Record low interest rates, the demise of final salary pension schemes and creeping rises in the state pension age are all thought to have led many workers to defer retirement.
Figures from the Organisation for Economic Cooperation and Development show Britain pays retirees the worst state pension of any country in the developed world.
The basic payout of £122.30 a week is the least generous in the West, worth only 29 per cent of average earnings.
Former pensions minister Sir Steve Webb, now director of policy at retirement savings group Royal London, said: ‘There are many women who are working into their early sixties – who wouldn’t have been in the past – because they now have to.’
But he added that others choose to stay in work – and can no longer be forced out at 65 following the abolition of the default retirement age in 2011.
‘It is a mix of people working longer because they want to and because they have to,’ said Sir Steve. ‘For some, this isn’t a choice. But for others it is a positive choice.
‘For example, you cannot be sacked for being 65 any more. There are people who used to be forced to retire who can now carry on.’
From later this year the state pension age for women will rise from 63 to match men at 65, and will reach 66 for both by 2020.
The Government’s economic forecaster, the Actuary’s Department, believes it will become 70 in the 2050s and 71 in the 2060s.
ONS figures show the number of over-50s in work has risen from just over six million at the end of 1997 and 7.9million in 2007 to just over ten million today.
The driver has been the number of women in work. The number of women aged between 50 and 64 in work hit a record high of 4.2million at the end of last year, up 144,000 or 3.5 per cent on a year earlier.
That figure is up 75 per cent on 20 years ago, when there were 2.4million women aged between 50 and 64 in work.
Tom Selby, a senior analyst at savings and investment firm AJ Bell, said generous final salary pension schemes have ‘withered on the vine in recent years’, forcing many to work for longer.
He added: ‘Given that life expectancy has been marching higher for decades, many will be forced to carry on working longer than they would have done previously to enjoy the retirement lifestyle they want. With the state pension age set to rise, the number of people working longer will continue to rise in the future.
‘For some people, working longer will be a blessing – some will work part-time, for example, to supplement their pension income.
‘However, others will inevitably feel they are being forced to work themselves into the ground.’
Employment Minister Alok Sharma said: ‘Staying in work for longer is better for our physical and mental wellbeing and means more money in people’s pockets.
‘These figures show people are positively changing their attitudes to employment in later life.
‘When I talk to employers it is very clear that they recognise the value of older workers in terms of their experience, commitment and ability to mentor younger colleagues.’
Former pensions minister Baroness Ros Altmann has warned the situation could get even worse as the state pension may have to be cut to avoid massive tax rises.
She said: ‘We are one of the world’s leading economies, but our support for the oldest in society is not fit for purpose.’
‘Work themselves into the ground’