- New report reveals clear link between poverty in working life and later life with clear financial divisions between baby boomers
- Millions of people in their fifties and sixties are being forced to work longer than anticipated due to the state pension age increase
- Age UK has voiced its concerns over the lack of support from the government for those who are struggling to make ends meet.
A generation divided
In its new study, the Centre of Longitudinal Studies (CLS) has revealed the divisions within the baby boomer generation.
It followed a group of more than 17,000 people born in the same week in March 1958. Many of the least well off had already left the labour market in their 50s, usually due to ill health. The poorest were more likely to experience declining health.
Despite many being forced into retirement, the majority of people expected to be working until their 60s, of which 35% of men and 25% of women said it was likely they would be working past 66. Few had paid into a pension, and with the State Pension age increasing, they will have to wait longer for any government support.
Age UK says
Charity Director, Caroline Abrahams explained why it was essential for the government to act on this situation, saying:
‘[This study] shows how poverty and disadvantage during working lives generally leads to poorer later lives, not just in terms of income but also housing, health and wellbeing. And it comes as no surprise that these are the people most likely to leave work in their 50s due to poor health, or if they are still working in their 50s, are most likely to expect to have to continue working past State Pension Age because they can’t afford to retire.
‘We remain very concerned about the situation of millions of people in their fifties and sixties today who are unable to work because of ill health, caring or unemployment; and who are having to wait longer for their State Pension than they had reasonably hoped and expected.
‘Better health and employment opportunities throughout people’s working lives are undoubtedly key to helping more people to work for longer. But the Government must offer more support to help those who cannot continue working and will be hit hard by further increases to the State Pension Age.’