Pensions - Articles - More economically inactive 50 to 64 year olds post pandemic

 The latest Labour Market figures from the ONS show there were 386,000 more economically inactive people aged 50-64 in the three months to July 2022 compared to the three months to February 2020 which marked the beginning of the pandemic.

 Commenting on the new data, Stephen Lowe, group communications director at retirement specialist Just Group, said the figures showed a sustained upward trend in inactivity with no sign of recovery in recent months.

 “There has been a fall in employment numbers and a rise in inactivity in this age group over the last 12 months when the expectation would be for an improvement from the darkest days of the pandemic.”

 He said that the ONS data suggests the main drivers of inactivity among this age group was long-term sickness and retirement, with fewer people described as ‘discouraged workers’ or leaving work to look after family compared to before the pandemic.

 “It’s concerning if these individuals are quitting the workforce for reasons beyond their control because it undermines their financial ability to prepare for retirement and it represents a massive loss of experience and skill to the economy.

 “All those stopping work early by tapping into pensions and savings increases the risk of running out of money in later life. Those thinking of retiring early need to ask themselves some hard questions about whether their resources are sufficient to see them through a long retirement.

 “We would recommend those thinking of giving up work should seek professional advice or free, independent and impartial guidance from the government’s Pension Wise service, to fully understand the implications.”