Uncertainty over state pension age increases has pushed at least 750,000 over 50s into considering or returning to work, it has emerged.
The current retirement age for both men and women is 66 with plans for this to increase to 67 between 2026 and 2028.
The further increase to 68 is not currently planned until for 2044-2046. However, there is ongoing pressure on the government from the London School of Economics (LSE) to bring this to as early as 2030 to save cash.
The previous government delayed a decision on bringing forward the rise and promised another review within two years. There are fears as Labour seeks to cut budgets, it could do this sooner.
Experts claim this has triggered more people heading towards retirement age, who had downed tools, to get back into the job market.
About 750,000 people aged between 50 to 64 are now actively looking for work or are willing or would like to work, say new Government figures.
And for 65-year-olds, their employment rate has experienced one of the biggest increases over time, compared to other age groups, from 26.9 per cent in 2014 to a huge 40.4 per cent this year.
Many in older age groups fear they have not saved enough for their retirement, as that date gets further away, GB News reports.
Over 50s finance specialist SunLife says 28 per cent of over 50s have no pension savings beyond the state pension.
Mark Screeton, CEO of SunLife, said: “If the state pension age were to rise to 68 by the early 2030s rather than 2044-46 as currently planned, millions could be left struggling with no private pension savings to fall back on.”
Those only in receipt of the current state pension will have less income than the £14,400 annual income required for the “minimum standard of living,” as defined by Retirement Living Standards.
The LSE is fuelling the fears after recommending raising the state pension age to 68 “as soon as possible”. It seeks to address the challenges of an ageing population and increasing pension costs.
An LSE report says it could mean £6.1 billion savings for the Treasury, while accepting a risk of “serious hardship” for thousands of elderly people.
Its report said: “We already have direct evidence on the effect of raising the pension age upon the wellbeing of all those affected… The answer is an average loss of 0.12 points of wellbeing (out of 10) for a year.”
It added that to remain in work to 68 could create a “real burden” for many.
Helen Morrissey, head of retirement analysis for Hargreaves Lansdown said: “The pandemic had a huge impact on over 50s workers, who exited the workplace in droves.
“Whether that be through redundancy or retirement, it not only left employers with an experience gap, it also left many older workers with a hole in their retirement planning.
“Leaving the workforce early not only means fewer contributions being paid into a pension, it’s also likely that people start drawing that pension earlier, which can put it under strain.
“This latest data shows some stabilisation, with the employment rate for those aged between 50-64 hitting 70.9 per cent. There’s every chance we will see this rate start to nudge upwards again in the coming years, especially as we see further increases in state pension age.”
