Over a quarter (26%) of retirees over the age of 55 have said they have been “forced out” of work, meaning they have had to take retirement earlier than expected, Just Group has found.

In research carried out by the retirement specialist for its countdown to retirement series, the group found that nearly half (45%) of retired and semi-retired people aged 55 and over had retired earlier than they expected to.

Just Group said that having to retire earlier than expected can cause significant financial difficulties as people have to bridge the gap before the state pension begins.

Although people do dip into pension savings to do this, this reduces the amount they must rely on in later life, while also limiting the ability to build up their pension should they return to employment.

Of the 1,000 retirees surveyed, the majority said they were driven out of the workforce due to factors beyond their control rather than choosing to retire for more positive reasons.

A third (33%) stated that they took retirement earlier than expected as a result of ill-health or physical impairment, with a further 15% either made redundant or not able to find a job.

One in 10 (10%) also said they retired earlier than expected in order to provide care to a family member.

Despite the varying reasons, one in five (20%) said their pension savings were large enough to support them through later life.

Group communications director at Just Group, Stephen Lowe, said: “This new research is evidence of the impact unexpected events can have on people’s later lives.

“For over a quarter of retirees early retirement is more of an unwelcome drama than a dream as they are forced out of employment due to events beyond their control.

“People cannot bank on being able to choose the exact point when they retire and in those circumstances a back-up plan becomes extremely valuable. It is worrying that so many people are dropping out of the labour market without knowing whether their pensions and savings will be sufficient.

“Life’s busy and people have competing demands for their attention but taking a bit of time to work out your ‘what if’ plan will be well worth it should life take an unexpected turn. A great place to start is Pension Wise. It offers free, impartial, independent and Government backed guidance designed to help over-50s understand their pension options.”

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