Cost of living pressures and a rising state pension age have resulted in a higher proportion of older workers in employment, according to new government figures.
An analysis of economic activity among the over-50s by the Department for Work and Pensions shows that the average age of exiting the labour market has risen to 65.7 years for men and 64.5 years for women.
The employment rate of 65-year-olds has also seen dramatic rises, from 26.9 per cent in 2014 to 40.4 per cent in 2024, driven by increases in State Pension Age that began in 2010.
The figures also show that there many older people want to remain in work, but are struggling to find the right opportunities. The government figures show that 750,000 people aged 50-64 who want work are not active in the labour market.
Just Group communications director Stephen Lowe says: “People are coming to terms with the fact that increased longevity and a rising State Pension Age mean it makes financial sense to work until later in life and it is good to see the government monitoring progress.
“The employment rate of those aged 50-64 is 70.9 per cent which is below the high of 72.5 per cent recorded in 2019.
“Inactivity levels among this age group – mainly those who are sick, retired or looking after homes or families – has trended lower for more than 30 years until 2019 when it reached a low of 25.5 per cent but has since risen to 27.4 per cent.
“The government recently pledged to tackle worklessness which will mean focusing support on some of the 750,000 in the 50-64 age group who are either actively seeking work or are inactive but are willing or would like to work. There are also 1.6 million who are not looking for work due to sickness or disability.
“Our own research among the over-50s found widespread concerns about ageism in the workplace with 55 per cent stating it was true that employers were less open to employing older workers, compared to 17 per cent who thought it untrue. There is a lot of skill and experience currently going to waste that will need to be harnessed and deployed if the economy is going grow.”
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