"Over 50s will become the leading group of workers within the decade, and the idea of “early retirement” could be relegated to the dustbin of history if recent trends continue."
The population of “early retirees” peaked at 1.6m in August 2011, but has since witnessed a continual decline, hitting less than 1.2m in today’s figures.
Aviva’s analysis also shows that early retirement is declining seven times faster amongst women than men.
The retired cohort of women in the 16-64 age group has fallen dramatically by 35%, from a peak of 1.11m in 2008 to 0.72m today. However male retirees in the same age rangeg have fallen by just 5% over the same period, from 0.45m to 0.42m.
This decline amongst women has largely been driven by the increase in their state pension age. Since 2010, the women’s state pension age has been rising from 60, to bring it in line with men. It is projected to reach parity with men, at 65, by 2018. The state pension ages for both women and men will then rise to 67 by 2028.
Today’s official employment figures show that 9.74m workers aged 50+ are now in employment. This is the biggest number since records began in 1992 and represents almost a third (31%) of the UK’s employment workforce – up from a fifth (21%) in 1992.
Aviva’s analysis projects the 50+ age group will hit 10m in 2018, and become the biggest cohort in May 2024, representing more than 1-in-3 workers.
Alistair McQueen, Savings and Retirement manager at Aviva, said: “When it comes to funding our longer lives in retirement, we have two options – save more or work longer. For many, the best solution will probably be a mix of the two.
“Auto-enrolment into workplace pensions encourages us to save more, and it is encouraging to see over six million new pension savers have joined the system since it was introduced in 2012.
“Our analysis suggests that we are also working longer. Over 50s will become the leading group of workers within the decade, and the idea of “early retirement” could be relegated to the dustbin of history if recent trends continue."
