Zarah ChoudharyAnalysis by Phoenix Insights found that the average age of retirement for women in the UK has increased by seven years in the past 30 years, with both men and women now retiring on average age 64.
30 years ago, there were two distinct peaks in when people chose to retire, driven almost entirely by gender differences; women retired on average age 56 (and 10 months) and men at 61 (and four months).
In 2024, the gender differences have largely disappeared with both men and women retiring on average at 64 – a seven-year increase for women and three-year increase for men.
In 1994 around one in four (27%) 18-year-olds were students, whereas today (2024) this is nearly half (48%).
At the other end of people’s careers, in 1994 around three in four (73%) 65-year-olds were retired, compared to just over one in three (39%) in 2024.
Patrick Thomson, head of research analysis and policy at Phoenix Insights, said: “There have been dramatic shifts in how we retire in recent decades.
“Thirty years ago, women typically retired in their mid-50s and men in their early 60s.
“Today, those gender differences have all but disappeared, with both men and women retiring on average at 64.
“State pension age increases has been the primary driver behind this, but it’s not just about changes to pension policy.
“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.”
This means changes to the state pension qualifying age have been a significant factor for increasing retirement ages over the last decade.
Between 2010 and 2018 the state pension age increased for women 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 further rises to 67 in the next few years, but Phoenix Insights polling suggested that it may not be as influential for future retirees who think they will want to or need to remain in work.
Nearly half (45%) of non-retirees said they expect to remain in work beyond their state pension age.
This was especially true for those currently out of work who expect to retire on average at 71, compared to 66 for those in work.
There is now a sizeable trend for people to enter or transition into self-employment after the age of 50.
One in five workers aged 60 to 64 are currently self-employed, increasing to one in three for workers over-65.
Nearly two-thirds (64%) of self-employed workers aged 60 to 65 had zero private pension saving.
One-third of over 50s now work part-time, and the rate of home-working in this age group has more than doubled post-pandemic, jumping from 10% to 22.4% between 2020 and 2023.
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 reasons such as caring responsibilities or ill health and find it difficult to re-enter the workforce.
“Being out of work prior to state pension age is a major driver of poverty, so it’s crucial we reverse this trend in the interest of individuals, businesses, and the wider economy.”
