More than 1.5 million state pensioners across the UK are remaining in employment, with many feeling compelled to delay their retirement plans due to the ongoing cost of living crisis.
Sharp Rise in Older Workers
According to an analysis of HMRC data by The Telegraph, approximately 1.56 million people over the age of 65 are currently on employer payrolls. This represents a significant 12 per cent increase compared to the 2020-21 period, when the figure was 1.39 million.
The trend extends beyond traditional employment. The data also shows that 562,000 pensioners were registered as self-employed in the 2024-25 tax year. This marks an eight per cent rise from five years ago, when 519,000 were self-employed.
Financial Necessity Drives "Unretirement"
Experts and charities point to financial pressures as the primary driver behind this shift. The Department for Work and Pensions (DWP) acknowledges that pensioners are choosing to stay in work, with the soaring cost of living a key factor.
Catherine Foot, Director of the Phoenix Insights Centre for the Future of Retirement, explained the dilemma. "While the state pension is designed to prevent poverty, many need more to maintain their living standards," she said. "The inflationary environment of recent years represents a major challenge to ensuring you don't outlive your savings, encouraging people to work longer."
The sentiment is echoed by charity leaders. Martina Kane of Independent Age stated: "We are deeply concerned about the older people we support who feel forced to continue to work out of financial necessity. No one should have to work well into later life just to survive."
A Cultural Shift in Retirement
This sustained increase in older workers signals a potential long-term change in how society views age and employment. Donall Breen, an employment law expert at Littler, commented on the evolving perspective.
"The rising state pension age may feed into a broader cultural shift of what is considered 'old' in the context of working life," Breen said. "Discussions regarding retirement may now start much later in people's careers."
For this new reality to work, experts argue that workplaces and government policy must adapt. Dr Karen Hancock from the Centre for Ageing Better called for a fundamental rethink.
"We need policies and workplaces that better reflect this changed reality," Hancock urged. "The traditional cliff-edge from full-time work to retirement is no longer the norm. The Government and employers must show greater appreciation of the capability and value of older workers."
The convergence of economic pressure, longer life expectancy, and a rising pension age is redrawing the later-life map for millions, turning what was once a period of rest into an extended chapter of economic activity.
