Pensioners are deciding to stick in employment due to the Cost of Living crisis.
Pensioners are deciding to stick in employment due to the Cost of Living crisis.(Image: )
1.5 million state pensioners are being forced to delay their retirement – and stay in work instead. The Department for Work and Pensions (DWP) state pensioners are deciding to stick in employment due to the Cost of Living crisis.
That’s according to the Telegraph newspaper, which has found around 1.56 million over-65s are on employers’ payrolls. That marks a 12 per cent jump on 2020-21 when the figure stood at 1.39 million, according to HMRC figures.
562,000 pensioners were recorded as being self-employed in 2024-25, up eight per cent from 519,000 five years ago. Donall Breen, of employment law firm Littler, said: “The rising state pension age may feed into a broader cultural shift of what is considered ‘old’ in the context working life.
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“At one time, someone being in employment in their late 60s was considered old, but that may become so common that discussions regarding retirement start much later in people’s careers.”
Catherine Foot, of the Standard Life Centre for Future Retirement, said: “While the state pension is designed to prevent poverty in society, many people need or want more than this to maintain their living standards and may not have the private pension wealth needed to do so without working beyond state pension age.
“The inflationary environment of the past few years is also a factor in encouraging people to work for longer or in driving people back to work as it represents a major challenge to ensuring you don’t outlive your savings.”
Martina Kane, of charity Independent Age, said: “While many of those still in work beyond state pension age will be doing so out of choice, we are deeply concerned about the older people we support who feel forced to continue to work out of financial necessity. No one should have to work well into later life just to survive.”
Dr Karen Hancock, of charity Centre for Ageing Better, said: “If we want to continue to increase the number of people working past state pension age, then we need a rethink of our view of retirement, recognising that the traditional cliff-edge from full-time work to retirement is no longer the norm.
“We need policies and workplaces that better reflect this changed reality. And we need the Government and employers to show greater appreciation of the capability and value of older workers.”