A Closer Look at the Growing Older Workforce
Following the financial crisis and the subsequent increase in the State Pension age, the number of individuals working beyond the traditional retirement age has grown substantially. Data shows a significant increase, with employment rates for those aged 65 and over almost tripling between 2000 and 2023, reaching approximately 1.4 million. This growing segment of the workforce is not monolithic; it includes a diverse group of people with varying motivations, skills, and financial situations. Understanding the composition and drivers behind this trend offers deeper insight into the UK's evolving labour market.
The Rise of Part-Time and Self-Employment
Older workers often seek flexibility, which is reflected in their working patterns. Many transition from full-time careers to part-time or self-employment roles. This allows them to supplement their income while maintaining a better work-life balance. Data from the Institute for Fiscal Studies and ONS highlights this flexibility, noting that people working beyond State Pension age are disproportionately likely to be self-employed or work fewer than 16 hours per week. Some individuals opt for self-employment to leverage their accumulated expertise, offering consultancy or other services. This can be a fulfilling way to stay mentally engaged and productive without the demands of a traditional full-time position.
Motivations for Working Later in Life
The reasons people continue working past 65 are complex and varied. While financial necessity is a major factor for many, it is not the only one. A 2025 study from The Horizons Tracker highlighted six main reasons for late-life employment:
- Financial reasons: Needing to cover essential costs, top up insufficient pensions, or afford non-essential items like holidays.
- Personal fulfilment: A desire to stay mentally and physically active, which has been cited as a primary reason for many.
- Enjoyment: Some individuals genuinely love their work and are not ready to stop.
- Social connection: Work provides routine, purpose, and social interaction that helps combat loneliness and isolation.
- Skill utilization: Employers may value the skills and experience of older workers, or an individual may want to contribute to a family business.
- Flexible arrangements: Opportunities for flexible working or phased retirement make continuing to work more attractive.
Challenges Faced by Older Workers
Despite the clear benefits, older workers also face significant challenges. The World Economic Forum noted in 2024 that age bias, both conscious and unconscious, remains a key barrier. Older workers report feeling overlooked during job applications and face stereotypes about their technological abilities, despite many being highly tech-savvy. Health issues also play a considerable role, with declining health being a primary reason for early workforce exit for many between 50 and 64. Moreover, some older workers, particularly women and ethnic minorities, are more likely to work out of financial necessity rather than choice, often due to lower lifetime earnings and smaller pension pots.
Comparison of Older Worker Employment Rates by Region
Regional disparities in older worker employment highlight the diverse economic conditions across the UK. Employment rates for people aged 50-64 mirror overall regional employment rates, but reasons for being out of work differ markedly.
| Region | Employment Rate (Ages 50-64, 2024) | Primary Reason for Being Out of Work (Ages 50-65) |
|---|---|---|
| South East | Highest (75%) | Lower proportion due to retirement |
| North East | Lowest (66%) | Higher proportion due to ill health |
| South West | - | Higher proportion due to retirement |
| North West | - | Highest proportion due to ill health |
Source: Centre for Ageing Better, 2025
These regional differences point to the need for targeted support, such as improved healthcare provision in areas with higher rates of health-related inactivity, and tailored employment services that account for local economic conditions. Furthermore, transport links and geographical mobility also impact older workers' access to job opportunities.
The Economic Impact of an Ageing Workforce
The trend of working longer has significant economic consequences for the UK. The Institute for Fiscal Studies suggests that a higher average retirement age could help offset the impact of an ageing population on the labour market and the economy's size by increasing tax revenues and slowing the growth of public expenditure on pensions. While this trend can be positive, organisations like the OECD have noted the high rate of 'job strain' among older UK workers, which can negatively impact their willingness to remain in the workforce. Addressing issues of ageism, job strain, and offering more flexible working models are crucial for retaining this valuable pool of experienced talent.
The Future of Older Workers in the UK
With the State Pension age continuing to rise, and people living longer, the number of individuals working past 65 is likely to continue its upward trajectory. The workforce is becoming increasingly multigenerational, requiring employers to adapt their policies and culture. Initiatives like flexible working, targeted training, and inclusive hiring practices will be essential for both employers and older workers to thrive. The pandemic has also accelerated the adoption of remote and hybrid working, providing greater flexibility that is particularly beneficial for older employees. Ultimately, a supportive environment that values the skills and experience of older workers will be vital for the UK's economic and social health in the decades to come. To learn more about employment rights and flexible working options, visit the official GOV.UK employment section.
Conclusion
The number of people over 65 still working in the UK is a growing phenomenon driven by a complex mix of financial, social, and personal factors. From 1.12 million people aged 66+ working in 2023-24 to the broader trend of late-career employment, the reality of retirement is changing. While this presents opportunities for both individuals and the economy, challenges like ageism and health disparities must be addressed. By embracing flexible working and fostering inclusive workplace cultures, the UK can harness the potential of its ageing workforce, ensuring a more prosperous and fulfilling later life for many.
