Nearly half a million over-50s have been forced into retirement earlier than they planned since the start of the pandemic in 2020, figures from the Office for National Statistics (ONS) have revealed.

Data from the ONS suggested that 493,000 people over the age of 50 have stopped working since the pandemic began.

ONS estimates suggest that about a quarter of a million workers between the ages of 50 and 70 left or lost their jobs and have not returned to paid work. The figures also show that about three-quarters (77%) of workers aged 50 to 60 left work earlier than they expected, compared to 57% of those aged between 60 and 70.

Those aged 60 years and over were more likely to be funding their retirement or time out of work from a private pension (66%) than those in their fifties (29%). The ONS also reported that retirement was also the most frequently given reason for leaving work during the pandemic (47%), with those aged 60 or over more likely to report this (58%) than those in their fifties (28%).

AJ Bell head of retirement policy, Tom Selby, commented: “While there are various reasons for people aged 50 and over exiting the labour market – including taking on care responsibilities, falling ill or wanting a change of lifestyle – retirement remains the primary driver.

“For some this retirement will be voluntary, while for others it may have been forced upon them early due to economic or personal circumstances.

“Unsurprisingly, those who are older are more likely to be funding their retirement or time out of work from their private pension. Nonetheless, almost 3 in 10 (29%) of those who left the labour market during the pandemic are using their pension pot to sustain them.

“The implications of mass early retirement could be seismic and there is a real danger tens of thousands of people risk sleepwalking into hard times in later life.”

Group communications director at Just Group, Stephen Lowe, added that the pandemic had “reversed the historic trend” for working later in life driven by policies such as rising state pension age.

“It’s concerning to see that many people have left the workforce earlier than they had expected because of the serious impact on their finances in both the short and the long-term,” Lowe commented.

“Not surprisingly, people leaving work during the pandemic are more likely to report increased worries around cost of living increases – 52% compared to 44% who left work before the pandemic.

“It’s important that policies are put in place to encourage older workers to go back to work and to give them the support they need. A significant minority – one fifth of those aged 50-60 (22%) and a third (34%) of those 60-70 – said they had experienced age discrimination when looking for paid work.

“Those deciding to tap into their pensions and savings early in life should seek professional advice or free guidance, such as the government-backed independent and impartial Pension Wise service, so they fully understand the implications.”

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