Pensions - Articles - How do people out of employment fare when SPA rises

 “Ensuring that people nearing state retirement age can remain in work is essential to many people’s retirement incomes as well as the country’s economic growth prospects. A combination of longer lives, rising cost pressures and economic uncertainty mean it’s never been more important to ensure workers don’t fall out of employment before they reach state pension age. One quarter of all 60–65-year-olds live in poverty* and good quality, satisfying employment can help build financial resilience for later life.

 “The government’s growth agenda also relies on retaining older workers. Over 50s leaving the workforce has a major impact on the output of the Industrial Strategy sectors and an estimated £31 billion of output is lost each year from individuals leaving before state pension age. An opportunity exists to reverse this situation for those set to retire in the next 10-15 years.

 “It’s never been more important for government, business and industry come together to look for ways to ensure all workers are properly supported with active labour market policies and adult careers support. This is particularly true of vulnerable groups such as women, those in poor health or on low incomes aged 50 and over, who are most likely to be pushed into income poverty as state pension age increases. Policies in this area will play a vital role in ensuring people remain in work and out of poverty in the crucial years leading up to accessing their state pension.”

 IFS’s report How do people already out of employment fare when the state pension age rises