The Institute for Fiscal Studies (IFS) have released a briefing note - using data from the English Longitudinal Study of Ageing (ELSA) Covid-19 study - to examine how the work activity and retirement plans of older individuals have been affected by the pandemic.

The data - collected in June and July 2020 - took information from nearly 6,000 individuals who are in their 50s and older. 

The study showed that nearly a quarter of employees aged 54 and over were furloughed in June and July and of those still working, twenty per cent were working fewer hours.

Concerns about job security were rife -  with 18% of those still in employment “somewhat worried about their job security” and 5% “very or extremely worried”. However, those in the 54–59 age bracket were more worried about their job security than those older than this.

The study found that 13 per cent of older workers have changed their retirement plans as a result of the pandemic - with 8% planning to retire later and 5% planning to retire earlier.  The IFS stated that this “illustrates how disruptive this crisis has been to major life plans.”

Those employees currently on paid/unpaid leave are more likely than others to now be planning to retire earlier – which the IFS indicated could mean that they are “discouraged about their prospects of finding new work.” However those working from home are 5 percentage points more likely than other workers to now be planning to retire later.

Furthermore, those with more wealth are also more likely to be planning to retire earlier – whereas the effect of stock market falls on pension wealth is one driver of later retirement plans.

LEBC Director of Public Policy - Kay Ingram - stated:

“These research findings highlight the importance of having a financial plan in place.”