Partner Article

Government challenged to drop retirement age

An Age Concern figurehead has challenged ministers to put an end to the retirement law, after figures reveal only one in four older workers plan to retire early.

Around 26% of people aged over 50 who have not yet retired plan to give up work before they reach the state pension age, according to the Department of Work and Pensions.

But 25% plan to work on after being able to claim state pension, while a further 12% say they will work for a long time after this date.

Andrew Harrop, Head of Policy at Age Concern and Help the Aged, said: “This survey is yet more evidence that millions of workers in their 50s and 60s are planning to work past state pension age, either because they want to or need to.

“The retirement plans of these workers could be shattered by the retirement age, ministers should start listening to what older workers are telling them and scrap forced retirement immediately.”

Figures also show many people do not know the benefits of working beyond the state pension age, with 44% not realising they do not have to pay National Insurance.

38% did not know they could defer their state pension in exchange for getting a larger income later.

Angela Eagle, Minister for Pensions and Ageing Society, added: “The idea that you suddenly stop work is being challenged by our generation of baby boomers.

“People want the choice to decide what’s right for them but many make this decision based on little or no knowledge of the financial facts.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .