Oldest kickstarted into retirement by pandemic

Today’s Office of National Statistics figures on the UK labour market showed it is the youngest and the oldest in the workforce who are most likely to have been made redundant as a result of the Coronavirus pandemic. Amongst the over-65 age group, employment is down a record 161,000 to 1.26m. This represents a massive 11.3% fall. In the 16 to 24 age group, employment is down 100,000. This is a 2.6% decrease. Gretchen Betts of Magenta Financial Planning told Financial Planning Today that the Financial Planning firm has seen an increase in the number of clients looking to take early retirement due to the Coronavirus pandemic. Aegon shared concerns about the lack of special economic measures in place to financial support the over 65s. Steven Cameron, Pensions Director at Aegon said: “The latest employment figures from the ONS confirm that it’s the youngest and oldest age groups who are bearing the biggest brunt of job losses as a result of COVID-19. In the 16-24 age group, there are 100,000 fewer in employment than the last quarter, a drop of 2.6%. It’s vital that we create opportunities for those starting their working lives and we hope Rishi Sunak’s kickstart scheme, which is targeted specifically at this age group, will make a big difference. “However, the decline in employment amongst over 65s is even more stark, having fallen by a record 161,000, or by a staggering 11.3%. The Chancellor has no new initiative for this age group, so for many this will mean being kickstarted out of work and into retirement earlier than they had planned. In recent years we’ve seen an accelerating trend towards people transitioning into retirement, continuing to work after traditional retirement ages often on a part time basis. For some, this is to remain active while for others, with gold plated final salary pensions largely a thing of the past, it’s a financial necessity. Unfortunately, it looks like for many, what they’d hoped would be a gradual transition has turned into a sudden departure from work. This shows how important it is that the Government looks at every age group and considers how best to support them as we tackle the COVID-19 crisis. “Anyone whose retirement plans have been disrupted by an unexpected loss of employment in later life should consider seeking financial advice to explore their options.”

Oldest kickstarted into retirement by pandemic

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