State pension age warning as over-50s risk being forced out of work early

Figures from the Office for National Statistics (ONS) show that almost half (44.7 per cent) of those aged 50 to 64 who are economically inactive say it is because they are sick, injured or disabled.

Women are also twice as likely as men to stop working due to caring responsibilities, with 18.1 per cent reporting ‘looking after home or family’ as the reason, compared with just 7.7 per cent of men.

That means around 876,000 individuals aged 50 to 64 are either actively seeking work, or are inactive but say they would like to work.

The gender disparity in caring responsibilities particularly affects women's ability to maintain employment through their fifties and early sixties, compounding financial pressures as state pension ages continue rising.

The average age of exit from the workforce has risen to 65.8 years for men and 64.7 years for women. The employment rate of people aged 50 to 64 now stands at 71.6 per cent, up 0.7 percentage points in the past year and close to the record high of 72.6 per cent in 2019.

But behind these headline figures lie stark challenges

Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, attributes lengthening working lives primarily to state pension age increases rather than worker enthusiasm.

She said: "With state pension age soon to start its rise to 67 it will be interesting to see whether we see working lives continue to extend."

However Ms Morrissey emphasised that whilst extended employment could benefit retirement planning through additional pension contributions or part-time transitions, significant obstacles remain.

She said: "Not everyone is actually physically able to continue to work. Poor health can also strike much earlier that you think.

"Another major challenge is of course caring responsibilities an issue that disproportionately affects women with more than 18 per cent of women saying it’s a reason why they cannot look for work compared to 7.7 per cent of men.

"These issues have enormous consequences for those who need to leave the workforce in their fifties. Shorter working lives mean less time to build up a workplace pension – and more time when people need to rely on existing assets.

"With the state pension age on the rise how do they bridge the gap? It’s an issue that will no doubt be an important part of thinking around the ongoing review into state pension age."

Those forced from employment in their fifties face severe financial consequences, with reduced pension-building time and extended periods relying on existing savings.

Ms Morrissey highlighted the importance of considering protective measures, including enhanced pension contributions and ISA investments accessible before pension eligibility.

She said: "Everyone needs to consider their own position if they were forced to finish work earlier, and whether there’s anything they can do to protect themselves – from building a bigger pension to investing alongside their pension in an ISA they can access if they need to before their personal pension is available.

She stressed the need for improved flexible working arrangements to help balance employment with caring duties, alongside affordable childcare provision.

She said: "The 50 plus population still has a lot to offer the workplace, and current challenges risk a significant loss of expertise for businesses," advocating for greater workplace flexibility to benefit both employers and older workers seeking continued employment.

As Britain debates the future of the state pension age, these figures highlight the growing number of over-50s already struggling to stay in work – and the urgent need for policies that reflect the reality facing older workers.