In the UK, the state pension age is 66. Yet, recent data from the Annual Population Survey (July 2023 to June 2024) shows that 9.5% of people aged 66 and older—about 1.12 million—are still working. This is up from 8.7% (880,000 people) a decade ago.
Retirement is often seen as a time to relax and enjoy life. So why are so many people still working? Research from Queen’s University Belfast looked into this, studying who works past retirement age and why.
Who keeps working?
Not all older workers are alike. They vary by age, health, ethnicity, and financial situation. Their reasons for working differ too: some work because they want to, others because they have to.
The data shows that men make up three in five older workers, and nearly all (94.4%) are white. More than half (51.5%) work despite having long-term illnesses. Most (71.2%) are married, in a civil partnership, or living with a partner. Jobs in higher management and professional roles account for 40% of these workers, while 32.1% are in intermediate jobs, like sales or some service roles, and 25.6% are in routine manual work.
Where they live also matters. Over 85% of retirement-age workers are in England, with most in the south (52.8%) and the north (33.1%). A majority (70%) own their homes.
Why do they keep working?
The survey identified six main reasons:
- To afford extras like holidays.
- Not feeling ready to stop.
- Employers value their skills or need them in a family business.
- Flexible working opportunities.
- To cover essential costs like bills.
- To top up pensions.
The first four reasons reflect choice, while the last two point to financial need.
Who works by choice, and who works out of need?
The study revealed clear patterns. Women are 25% more likely than men to work out of necessity. Asian workers are 120% more likely than white workers to be in this situation, with black workers and those of other ethnic backgrounds also more likely to work out of need.
Health and marital status make a difference too. Those without long-term illnesses are 33% less likely to be working out of financial need, while single or unmarried people are 56% more likely to feel forced to work.
Job type plays a big role. People in intermediate roles are 37% more likely to work out of necessity than those in senior jobs, while those in routine manual work are 67% more likely. Homeownership also matters: retirees with mortgages or renting are 117% more likely to feel financially pressured than those who own their homes outright.
Why this matters
The state pension age will rise to 67 in 2026-27 and could increase further. As living costs climb and the population ages, more people may need to work into retirement.
Understanding why people keep working is vital. Those who work by choice may need flexibility and opportunities for skill development. Those who work out of necessity need stronger financial support.
For example, older women often have smaller pensions due to career breaks for caregiving. Addressing this could involve better pension credits for caregiving periods or financial advice.
If Britain is to support its older workers, policymakers and employers need to design solutions that meet diverse needs. This will help ensure that working in later life is both sustainable and fair.
