At least 750,000 over-50s are thought to have been pushed into considering or returning to work as a result of state pension age increases, new research suggests
People in their 50s are facing a stark warning about the possibility of a state pension age hike.
Those born between 1965 and 1974 have been alerted that increases in the state pension age have already led at least 750,000 over-50s to consider or return to work. Mark Screeton, CEO of SunLife, warned: “If the state pension age were to rise to 68 by the early 2030s rather than 2044-46 as currently planned, millions could be left struggling with no private pension savings to fall back on.”
He also highlighted that while some older individuals might manage working until 68, many encounter “real challenges” staying employed beyond 50, which could affect families that depend on grandparents for childcare, reports Birmingham Live. A report from the London School of Economics (LSE) revealed: “We already have direct evidence on the effect of raising the pension age upon the wellbeing of all those affected… The answer is an average loss of 0.12 points of wellbeing (out of 10) for a year.”
The LSE has warned that working until 68 could pose a “real burden” for numerous people, potentially diminishing their overall wellbeing and life quality. Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: “The pandemic had a huge impact on over 50s workers, who exited the workplace in droves.
“Whether that be through redundancy or retirement, it not only left employers with an experience gap, it also left many older workers with a hole in their retirement planning. Leaving the workforce early not only means fewer contributions being paid into a pension, it’s also likely that people start drawing that pension earlier, which can put it under strain. This latest data shows some stabilisation, with the employment rate for those aged between 50-64 hitting 70.9 per cent. There’s every chance we will see this rate start to nudge upwards again in the coming years, especially as we see further increases in state pension age.”
