Surge in pensioners who carry on working

THE number of pensioners with jobs has trebled since the 1980s and one in 10 of those over the age of 65 is now in work.

The Department for Work and Pensions figures showed that the number of working pensioners has risen from 396,000 in 1984 to 1.14 million last year.

They also suggest that early retirement is in decline, with the number of people aged 50 to 64 in work rising by 57 per cent to 8 million. Seven in 10 people aged 50 to 64 are now in work, compared with just over half in 1984. The rise has been driven by a huge increase in the number of older women in work. In 1980 just 2.9 per cent of women over the age of 65 had jobs. Today the figure is 7.4 per cent.

Ros Altmann, the former pensions minister, said: “People are not necessarily ‘old’, in a conventional sense, at age 50, 60 or 70, and are increasingly choosing to keep working.

“This can be good news for them, good for their employer and the economy, too. It will boost their lifetime income and can also be better for their health and general wellbeing.

“In 21st-century Britain, after all the successes in healthcare and working conditions, it makes sense to celebrate the increased employment of older people and to take advantage of the skills and talents of our aging population.”

The proportion of older people who have jobs is increasingly comparable to the ratio of younger workers, aged 25 to 49, in work, the figures show. In 1995, 77.7 per cent of younger workers had jobs, compared with 57.2 per cent of those aged 50 to 64. Last year 82.3 per cent of younger people had jobs compared with 69.4 per cent of older people.

The rise in the number of older people who are working has been par- ticularly steep in the past decade, when the number of people in work rose from 6.8 million to 8.2 million. Increases in the state pension age for women have contributed to the growing trend.

Many are choosing to work until later in life because they are healthier than previous generations and want to enjoy the same standard of living.

Damian Hinds, the employment minister, said: “It is clear that people over 50 aren’t slowing down or getting ready for retirement. I want to see businesses supporting this momentum while also reaping the benefits of the skills and expertise these older people can bring to the workplace.” Earlier this year, the Government hinted that millions of people could be forced to work until they are 75 under a review of the state pension age. Ministers have announced a radical review of the pensions regime amid concerns that the system is not “affordable in the longterm”.

The current state pension age is 65 for men and between 60 and 65 for women, and is due to rise for both to 66 by 2020. It is due to increase to 67 between 2026 and 2028, and will be linked to life expectancy afterwards.

The Office for Budget Responsibility has forecast that the pension age will have to rise to 69 by the late 2040s.