"I have always thrown myself into work - now it keeps me alive": the over 65s forced to join the "great early retirement"

Before she retired three years ago, Sue Brown felt exhausted. At 67, she was juggling a busy job at a chauffeur company and caring for her partner, Neil, who had serious health issues. “I took reservations and managed drivers, so I often left the house at 4 a.m.,” she says. "I've been working since I was 15, but it became too much."

In February of this year, Neil passed away. Two months later, Brown took a part-time job in a kitchen canteen in Dorking, Surrey, where she lives. At first, she was looking to distract herself from her grief and stay active, but with the skyrocketing cost of living, working became a necessity. "I was not entitled to any benefits after losing Neil. I live in the mobile home he left me, but my pension only brings me £720 a month. there is no more money to Brown has to pay for a car as local bus service is limited "I'm very lucky because I'm in good shape, apart from a bit of arthritis, but I don't know how long it will last" , she says. She fears that rising fuel bills will make her unable to afford food.

Although she would like to be more financially secure and believes that the government should do more to support people, she loves her job."I mainly clean tables and do the dishes among other tasks. It's a nice place to work and I like being around people She also gets a hot meal every shift, which helps reduce energy bills for food and cooking.” I've always thrown myself into work, but now it keeps me alive too."

Stories like Brown's are so common they've inspired the phrase "the great non-retirement". New figures from the Center for Aging Better show that the number of people aged 65 or over entering the workforce increased by 173,000 in the first quarter of 2022. of people working in their 50s, 60s and beyond” , explains Kim Chaplain, specialized adviser for the work within the organization. "While we don't know all of the reasons behind each person's decision, we suspect the rising cost of living is playing a role."

According to a study by The Institute for Fiscal Studies, funded by the center, raising the retirement age from 65 to 66 led to a sharp increase in the number of people working at age 65, and an even larger increase in the number of 65-year-olds living in absolute poverty. "People who are already in a decent job can hang on for another year - but for many who can't get into work, another year without the state pension just means another year of trying to get by. coping with inadequate working-age benefits," says Chaplain.

Ian Dempsey, independent financial adviser and pensions expert, says the impending financial crisis will impact meaningful to its customers. “A lot of people are afraid of when they will be able to retire. Rather than increasing pension contributions, they must reduce them, which will have a knock-on effect. , suggesting that one in five people are cutting their pension contributions, with a one-year break costing savers up to 4% of their total fund. “Retirement is a very different concept now. You no longer stop at 65 and put your feet up. It gets to the point where people work as long as their health allows and only retire if they physically can't work,” Dempsey adds.

End-of-career pensions, which provide a guaranteed income for life based on your final salary, are largely a thing of the past in the private sector. Instead, individuals became responsible for managing their own retirement savings. “Money is still a huge taboo in this country and people aren't getting the right financial advice and education on how to get the most out of our savings,” Dempsey says. “People are often ashamed of their financial situation, especially if they have been in debt or had financial problems for some reason. We need to normalize these situations and talk about them openly. dotcomrendering.pageElements.ImageBlockElement" class="dcr-10khgmf">