Middle-aged warned over perils of retiring too early

MILLIONS of middle-aged Britons could be warned they cannot afford to retire early under back-to-work plans being considered by ministers.

The Government is looking at massively expanding its “midlife-mot” scheme to combat a rising trend in over50s quitting the labour force.

Under the proposals, pension providers, employers and trade unions would contact 50-64-year-olds offering them a financial health check.

Ministers are concerned that many middle-aged workers who quit during the pandemic do not have enough money to see them through retirement.

That is especially true of those in their 50s, with analysts predicting a high proportion will be forced back into work because of the effect of inflation.

The number of jobless 50-64-yearolds has risen to 3.6million, with two in five citing sickness or disability as their reason for leaving work.

Mel Stride, the Work and Pensions Secretary, has launched a review into how to reverse that trend, given Britain is suffering a labour shortage.

He is set to report back to Jeremy Hunt, the Chancellor, in the new year with ideas to address the problem, so that they can be included in the spring Budget. Addressing MPS last week, Mr Stride said that an “educational endeavour” was needed to make over-50s aware of the huge cost of retirement.

He said that some “may be mistakenly feeling they’re in a financially secure position that will last them right the way through to the end of their life”.

Mr Stride said that a person born in 1971 now has a 50 per cent chance of reaching 100.

‘Some may be feeling they’re in a secure position that will last them through to the end of their life’

“I don’t think people think in terms of that time horizon when they’re at that [age],” he said of early retirees.

A poll by jobs site Cv-library found that 90 per cent of over-50s who have quit the labour force are now looking to get back into work.

Other measures being considered by Mr Stride include extending the Restart jobs programme to 50-64-year-olds.

The scheme is set to underspend by £1.2billion, meaning cash is readily available. Tory MPS have called for its remit to be expanded.