𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Older people working past the state pension age contribute more than £60 billion to the economy each year, a charity has found. The £6.8 billion paid yearly in income tax and employer national insurance contributions (NIC) by these silver workers is larger than the total tax paid in the UK by giant multinational corporations such as Amazon and Tesco.

The employment rate for people over 65 has more than doubled since 2000 and currently sits at 13.2%, the Centre for Ageing Better (CAB) said. More than 180,000 people in this age group have joined the workforce in the last year alone, bringing the overall number to a record 1.7 million people. Dr Andrea Barry, deputy director for work, retirement and transitions at the CAB, said: “Our analysis of the post state pension age workforce is further evidence that retirement in this country is changing.”

Dr Barry said: “The traditional retirement cliff-edge, where people moved directly from full-time work to no work, is no longer the case for the majority.

“Government policy needs to catch up with this fundamental change.”

The CAB said ageism, health conditions and caring responsibilities are all barriers that prevent many more people continuing to work up to state pension age, and beyond.

Around two in three people working past state pension age say they work for enjoyment, health or other non-financial reasons.

A minority say they keep working for financial reasons – for example, being unable to afford retirement (14%) or wanting to improve their finances (21%).

The CAB said more employers needed to adopt a flexible working approach.

It added that better paid carers’ leave and work cultures with “open discussions about employee health and health support” were needed.

Dr Karen Hancock, economist and research analyst at the CAB, said: “People working past state pension age, in the right work for them, can enjoy many benefits including a sense of purpose, cognitive stimulation, order and routine, as well as feeling part of a team and the social interactions that being in work can offer.

“Those benefits also spread to the wider economy, as we see in the significant and growing economic output of this age range.

“And those benefits are also felt by employers, as studies have shown that multigenerational workforces are more innovative and productive.

“The challenge is currently that many of those working past-state pension age are doing so because they want to, while those who have a financial imperative may find it harder to find work.”