The Resolution Foundation found that a jump in people taking early retirement disproportionately comes from highly-paid workers over age 50, making it more difficult to persuade the group to return to work.
“We need to reboot progress on getting people into work, but we’re not going to achieve it by persuading the recent Covid cohort of older workers to ‘unretire’,” said Louise Murphy, economist at the Resolution Foundation. Two-thirds of the older professionals that left the labour market own their house outright, making it harder to persuade them to take up a job, it said. In contrast, the foundation said that in lower paid occupations, the numbers moving from employment into retirement are falling as soaring inflation triggers the tightest squeeze on living standards in generations.
The problem will be worsened by the number of people aged 65 and over rising by 2.5 million from 2020 to 2030 as the population ages.
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