Nearly half of people over 50 will have a job by the end of this decade, as more people in their 60s will continue to work past retirement age, according to a new study.
If this partly reflects the fact that we are living longer as a society and the increase in the age at which one can claim a state pension, it is also because some are relatively closer to retirement. poor.
The over-50s as a group continue to hold the majority of Britain’s wealth in cash, property, pensions and other assets – but those nearing retirement age have seen their share of the national wealth shrink.
Aging workforce: 47% of people over 50 expected to have a job by the end of the decade
Britons aged 50 to 64 now own 36% of the UK’s wealth, up from 42% a decade ago, according to a study by Legal & General and the Center for Economics and Business Research (Cebr).
This gradual shift in wealth may be pushing them to continue working so that they can have enough in retirement, according to the report.
The proportion of those over 50 still in employment has grown steadily over the years: from just 31% in 1992 to 42% last year – and is now expected to reach 47% by 2030, a new record.
Overall, this is a 36% increase over the past 20 years, driven by a substantial increase in the number of people in their 60s living and working longer, according to the report.
Since October of last year, the retirement age for both men and women has risen to 66, but many people continue to work beyond this stage.
The number of people over 50 and in employment increased from 31% in 1992 to 42% in 2020
Some 8 percent of the over 66 people are currently employed, averaging 26 hours per week.
That number is expected to reach a record 11 percent, or about 948,000 people, by the end of the decade, the report predicts.
This percentage could increase further if we see further changes in the statutory retirement age in the coming years.
Right now, we know the next increase will be between 2026 and 2028, when the legal retirement age for both men and women rises to 67.
Retirees on the full flat-rate state pension currently receive £ 179.60 per week or around £ 9,300 per year, if they reach retirement age after April 2016.
The old basic state pension, for people who have reached retirement age before that date, is £ 137.60 per week, or around £ 7,200 per year.
Pension ‘triple lockdown’ could be removed amid spiraling costs involved
But more than two million people will not receive any of those full rates, according to a recent analysis.
In addition, it appears that the ‘triple lock-in’ of pensions, which ensures that the state pension increases to the maximum according to inflation, average incomes or 2.5%, could be removed in the middle of the costs. croissants involved.
“People continue to work longer, in order to achieve the retirement lifestyle they want, but also in response to changes in wealth, state pension plans and to reflect the fact that we are living longer. long as a company, ”said Andrew Kail, Managing Director of Legal & General Retail Retirement.
“It creates a much harder hurdle for people to overcome in order to fully retire,” he added.
“The days of ‘clock retirement’ are over and we need to make sure people understand the implications so they can better plan for their future and how work will play a role in it. ”
The increase in the proportion of people working to old age has led to a narrowing of the employment rate gap between those under 50 and over 50
While the employment rate of 60-year-olds has nearly doubled over the past two decades -om 23 percent in 1992 to 41 percent last year – the percentage of working people under the age of 50 has remained fairly constant over the years. years.
This has resulted in a narrowing of the employment rate gap between those under 50 and over 50.
From 42 percentage points in 1992, the gap narrowed to 35 percentage points in 2020, with a further narrowing to 29 percentage points expected by 2030.
These demographic changes in the workforce and changes in the statutory retirement age have also helped to narrow the gender gap at retirement age.
While the average retirement age has increased by 1.9 years for men (to 65), the average age at which women retire has increased by 3.6 years (to 64) since 1992.
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