The average age of retirement for women in the UK has increased by seven years in the last three decades with both men and women now retiring on average at age 64, new analysis by Phoenix Insights has revealed.
The analysis, part of Phoenix insights latest report, found that 30 years ago women retired on average age 56 and 10 months while men retired at age 61 and 4 months. In 2024, the gender difference has largely disappeared with men and women retiring at the same age.
The report found that people are starting and stopping work later in life, remaining in education for longer than previous generations and delaying retirement. In 1994 around a quarter (27%) of 18 year olds were students, whereas today that figure stands at nearly half (48%). In 1994 around three quarters (73%) of 65-year-olds were retired compared to just 39% in 2024.
Patrick Thomson, head of research analysis and policy at Phoenix Insights, said state pension age increases have been the primary driver behind the “dramatic shift” in retirement age. Between 2010 and 2018 the state pension age for women increased from 60 to 65 becoming the same as men, and increased again between 2018 and 2020 to 66 for both men and women. There will be a further rise to 67 in the next few years.
Thomson said: “Women now make up a much bigger part of the workforce and greater workplace flexibility means more people now transition to retirement gradually staying in work for longer on reduced hours. There has also been a trend towards self-employment among the over 50s. This can give people more choice and control over their working life but may also be due to being unable to find work with an employer.”
Thompson said one and five workers age 60 to 64 are currently self-employed increasing to 1 in 3 for those aged over 65. Flexible working arrangements have also surged in popularity, becoming a key factor in why people choose to stay in the workforce longer. One third of over 50s now part-time.
Thomson added: “Flexible work has been a game changer for supporting over-50s to continue to work earn and save later in life but we still have high rates of economic inactivity among this group. Many over-50s fall out of work early due to reason such as caring responsibilities or ill health and find it difficult to re-enter the work force. Being out of work prior to state pension age is a major driver of poverty so it is crucial we reverse this trend in the interest of individuals, businesses and the wider economy.”
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