Cash-crunch fears for nearly 2m over-50s who stopped working

ALMOST two million over-50s who have left the workforce face a cash crunch in retirement, according to new research.

A report by Phoenix Insights found “notable” differences in the fortunes of over-50s who have fallen out of the workforce.

The think tank, which is part of the FTSE 100 retirement savings group, said there were “significant concerns about the ability of many … to sustain a decent standard of living in retirement”.

Some 3.6m people aged between 50 and 64 are classed as economically inactive, with more than 350,000 giving up work since the pandemic.

The million or so who have opted for early retirement have an average wealth of over £1.2m each. However, those who say they are looking after their family or home have average assets of just £137,000.

Median wealth for those who are economically inactive because of long-term sickness or disability is lower still at just £57,000, more than 20 times less than those who have chosen to retire.

A total of 2m people have been forced from the workforce through sickness or care commitments and Phoenix said there were serious concerns about how long they could sustain themselves for.

Catherine Foot, director of Phoenix Insights, said: “It’s important not to dismiss economic inactivity in this group as a case of rich baby boomers choosing to enjoy time on the golf course.”

Phoenix urged the Government to find ways to make it easier for older people to return to employment, such as by offering greater flexibility on how and when they work.