Excluding those below 18, who are often in full-time education, the increase in economically inactive 50 to 64 year old’s is the biggest contributor to the UK’s economic inactivity and subsequent decline in productivity, he explained.
“In the last year or so, a few of my clients who took early retirement have returned to work. Mostly working less hours and in a different role or sector than before.
“Many of this age group, who are classed as part of the ‘baby boomer’ generation, are in a better position financially than preceding generations. And currently looking better off than many of the subsequent generations.”
He argued that this is a trend that is unlikely to continue - especially with state retirement age likely to increase further.
Meanwhile, Philip Milton of Philip J Milton & Company said there is no simple answer.
“More people can afford to ‘retire’ and some are (but also some who did have are bored and now are returning to work),” he said.
“The jobs’ market is still tight so the opportunity to move-around is easier as a result with enticements to make people move.
“The public sector is also bigger so it has taken staff from the private sector where ‘it’ can afford to pay what it takes to fill the ‘hole’.”
sonia.rach@ft.com
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