ONS: Number of pensioners in work has doubled since 1993

ONS: Number of pensioners in work has doubled since 1993

By Ed Monk

PUBLISHED: 05:25 EST, 13 June 2012 | UPDATED: 11:33 EST, 13 June 2012

The financial crisis and our ageing population has brought about an army of older workers who are turning to taxi driving, property development and cleaning to make ends meet.

Figures released by the Office for National Statistics (ONS) today showed that the number of workers above the official retirement age has doubled since 1993, from 753,000 to 1.4million last year, with most of that rise coming since 2000.

While some of the increase is down to the high number of baby-boomers reaching retirement, the figures also showed that the proportion of workers above retirement age was rising faster than the population generally - indicating that a higher proportion of this age group is staying in work than previously.

Face of things to come: More of those above the retirement age are working - with taxi driving proving a popular choice among male pensioners.

Some 7.6 per cent of those aged above the state retirement age were in work in 1993, compared to 12.0 per cent last year.

DO OLDER WORKERS STEAL JOBS FROM YOUNGER WORKERS?

It's a popular claim - surely if older people are staying in work longer it takes jobs from younger people, writes Andrew Oxlade.

And how can this be in any way sensible or fair when youth unemployment has risen sharply during the financial crisis.

But the overwhelming view from economists say is that this simply isn't true.

In fact, they have a technical term for it: 'the lump of labour fallacy'. This, they say, is the belief that there is a fixed number of jobs in the economy.

In reality, the economy expands, broadly, with the size of the workforce â€" one of the reasons for political acceptance of immigration.

- Read more and join the debate

Analysis by the ONS showed that 39 per cent of workers above the retirement age are men and 61 per cent are women. This may reflect the lower levels of pension provision for women arising because of periods out of work to raise children, as well as generally lower employment benefits than their male counterparts.

Around two-thirds of male workers in this group are in jobs classed as higher skilled, while almost two thirds of women are in lower skilled roles.

There are higher proportions of part-time work and self-employment among older workers, reflecting efforts by older people to reduce their workload in a more gradual way, rather than switching directly from full-time work to retirement.

The ONS report also suggested that improved standard of health were allowing people to work longer, but that lower incomes in retirement were also playing a part.

The property boom and rise of private buy-to-let landlords - often older people who have seen their property wealth balloon - is reflected in the figures. 'Property manager' is included as one of the more popular roles being carried out by older men.

The most popular jobs undertaken by men after the retirement age were farming and taxi driving, while there were signs that executive level workers were choosing to work longer with high numbers of marketing and sales directors, production managers and chief executives among older male workers.

A woman's lot is harder, the ONS figures suggest, with common roles among older female workers including cleaning, administration assistance, care working and retail.

Rise of the grey army: More people are working past the retirement age.

People in, or close to, retirement have been faced with the prospect of a substantially reduced income thanks to the financial crisis. Pension funds have been reduced as stock markets have been battered by recession conditions in the world's developed economies.

Additionally, the return on annuities - bought at retirement to provide an income for life - are at record low levels because yields on the assets that fund them, gilts, have been pushed lower by the policies adopted to combat slower growth in the economy. 

However, while much of the motivation to stay in work is financial, campaigners for older people said that many were choosing to stay in the labour market for other reasons too.

How older people work: There is a higher proportion of self-employed and part-time workers among older workers.

Dr Ros Altmann, Director-General of Saga, said: 'Many  older  people  are  increasingly  choosing  to  stay  at work, often part-time  so that they ease more gently into retirement.  If they feel fit and healthy and want more money, and are able to work, they are choosing to do so.

'Saga’s research shows that many of our over 50s already want to work past
65. 71 per cent  would like to work part time rather than retiring and in fact 7 per cent are  already  working  past  the age of 70. This isn’t just for the money - work  satisfaction,  feeling  useful  and  the social benefits we gain from working were key reasons that people wanted to continue.'

The trend for older workers will continue, according to Tom McPhail, head of pensions research at Hargreaves Lansdown.

'This is an inevitable consequence of more and more people arriving in their 60s with inadequate retirement savings', he said.

'This trend will accelerate ov er the next few years; it presents a significant challenge to individuals and employers who will need to find ways to accommodate more flexible working patterns and later retirement ages.’

The state retirement age had remained steady - 60 for women and 65 for men - for many decades until increased life expectancy forced plans to raise it.

The last Labour government drew up plans to equalise retirement ages between the sexes and then raise them for all over the coming decades. The Coalition government accelerated plans so that the retirement age will rise to 66 for both men and women by 2020. A further rise to 67 will commence in stages from 2026.

Darren Philp, policy director for the National Association of Pension Funds, said: 'Our rapidly changing demographic is hitting home. Having more older people in the workforce will increasingly become the norm.

'The problem comes when people want to retire but end up stuck at work because they cannot afford to leave. With half the workforce not saving into a pension, this is going to become a painful reality for millions. It is vital that we get more people planning and saving for their old age, and that they start as early as possible.'

Geographically, employment rates for older people in the regions was consistent with rates for the working population generally, with the South boasting the highest employment rates.

However, the one exception was London. For the younger population, London only ranks eighth of 12 in terms of the employment rate, but for older people it has the 2nd highest percentage in employment, behind the South East. This may reflect the higher cost of living and the greater variety of jobs in London which might provide an incentive for older workers to remain in the labour market.

ONS stidy shows a higher proportion of older workers in the affluent South East.

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