Dreaming of retiring to sunnier climes?? You’re more likely to be still putting in the 9 – 5 according to figures which show the number of over 65’s still in work has doubled in the last 10 years.
People of retirement age have been hot by falling annuity rates, falling interest rates on savings, stagnant or falling property prices and poorly performing pension funds have been forced to defer retirement and continue working – in order to have a livable income when they finally do retire.
In 2001 the number of over 65’s in work was 412,000 and at the end of last year it was 870,000 according to figures from the Office for National Statistics (ONS).
The increase was for full and part-time work and is set to become a permanent feature with the state pension age for both men and women rising to 66 by 2020. From October, the default retirement age of 65 will no longer apply.
While the increase in older workers was hailed as a victory against age discrimination, unions warned that older employees could suffer serious injuries if they are placed in an unsuitable workplace.
Around two-thirds of those in work after 65 have been with their employer for more than 10 years, the ONS found, and their continued presence could threaten job opportunities and wage levels for their grandchildren.
A record 658,000 men and women will turn 65 this year, the largest number since records began. The retirement of the “baby boom” generation will add an extra £2bn to the nation’s pension bill.
With many over-65s now intending to remain in work, employers who wish to “shake up” their staff fear a rise in redundancy payments. However, the lack of national insurance payments for workers of state pension age is a cost-saving incentive.
Food for thought !