“Keeping people in their 50s at work for longer must be a priority,” analysts say
Those resigning between the ages of 50 and 64, the national pension age, could cost £88 billion in the pension economy, ONS said.
If the employment rate for ages 50-64 was similar to the employment rate for ages 35-49, it could add 5% to GDP or £88 billion.
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AJ Bell’s retirement policy director Tom Selby said early exits from the 50-year-olds from the workforce will have a major impact on both individual retirement plans and the wider economy. I stated.
Not everyone who quits work early does so voluntarily. In many cases, it can be due to problems such as unhealthy.
“And perhaps not surprising, people who work in low-paid or physically intensive sectors are more likely to be at the state pension age due to illness than those who work in other occupations. Working for six times more than that,” Selby said.
Additionally, women are much more likely to be economically inactive before national pension age than men.
At age 50, 17.9% of women were economically inactive compared to 9.6% of men, while at age 64, 58.6% of women were economically inactive compared to 44.9% of men .
According to Selby, this could “perpetuate the pension gap between genders.”
“Stop work in your 50s – theoretically, your income power and the ability to save money should be the best – and it could have a big impact on people’s outcomes after retirement.”
In many cases, it can mean extending your retirement funds for longer. In other words, it can be spent in the later years.
“It can also affect people’s health and well-being. For all these reasons, supporting people in their 50s should be an absolute priority for policymakers,” Selby said. says.
