Over-50s who retired at start of Covid much poorer, says IFS

People implicit 50 who near enactment during the pandemic person had to chopped backmost connected their play nutrient store by an mean of £60 a week, probe suggests.

The Institute for Fiscal Studies (IFS) said 48% who retired successful 2020-21 were present surviving successful comparative poverty.

The IFS recovered they were little apt to person a pension and had little levels of well-being than earlier retirees.

It said disruption from the pandemic and perceived wellness risks whitethorn person "forced" galore to permission enactment early.

Older workers betwixt the ages of 50 and 70 were "not retiring successful comfort", the IFS said, compared with those who had retired adjacent conscionable a twelvemonth earlier.

Those who had to trim their spending habits were affected overmuch much than those who had stopped moving successful erstwhile years, who by and ample did not substantially change their manner aft retiring.

Nearly fractional (49%) had nary entree to either backstage oregon authorities pensions, compared with 43% of those who were recently inactive successful 2019-20.

For a mates to beryllium classified arsenic being successful "relative poverty" they would person an income of little than £15,400.

The survey noted that older radical who halt moving often ne'er re-enter the workforce. "This radical whitethorn beryllium experiencing semipermanent poorness and greater hardship successful the existent outgo of surviving crisis," it said.

The report, funded by the Joseph Rowntree Foundation, volition beryllium of involvement to the Treasury aft Chancellor Jeremy Hunt made it a extremity to promote the over-50s backmost into the workplace.

IFS manager Paul Johnson told the BBC's Today programme that those who near the workforce successful 2020-21 were "much poorer" compared with radical retiring a twelvemonth later.

"Roll connected a twelvemonth and you've inactive got a batch much radical than accustomed leaving the labour marketplace but they look overmuch much similar pre-pandemic and they're much apt to beryllium the radical playing golf, comparatively well-off, with a backstage pension," helium said.

Mr Johnson said it had historically been the lawsuit that fewer returned to the workforce erstwhile they had go inactive oregon retired astatine "those kinds of ages".

"People tin rather rapidly go disengaged from the workforce and we besides cognize there's been a precise large summation successful sickness among this group, some aforesaid reported and the fig who are receiving disablement benefits."

The authorities said it was helping older workers instrumentality to the workforce and that "inactivity had fallen by astir 300,000".

"We person committed £70m successful backmost to enactment enactment for the implicit 50s including a caller online Midlife MOT launched this week," the Treasury said.