The employment rate for women aged 65 and older has surged to over 700,000, marking a significant milestone that raises concerns about the implications for workers in this age group.

Trends in Employment for Older Women

According to the Office for National Statistics (ONS), the number of employed women in this demographic has nearly tripled over the past 30 years. This change reflects broader societal shifts where both older men and women increasingly extend their working lives into their 60s and 70s.

Driving Forces Behind the Increase

A crucial factor in this trend is the ongoing rise in the state pension age. The retirement age for women has been aligned with that of men, moving from 60 to 66, with proposals to increase it further. These changes have compelled many women to stay in the workforce longer, often through necessity.

Challenges Faced by Older Workers

Experts express concern that some women may be compelled to work despite health issues due to financial pressures, having to wait for their state pension to commence. This situation can lead to adverse effects on their well-being, as they often feel they have “nothing to live on.”

Positive Perspectives

On the other hand, some women appreciate the opportunity to remain employed, citing benefits that contribute positively to both their personal finances and the economy. Many enjoy the social interactions that work provides, in addition to the financial security it offers.

Changing Dynamics

Statistics indicate that as of this year, approximately 10.3% of women aged 65 and over are part of the workforce—a steep increase from just 3.5% in 1992. While this trend is also observed among men, with employment among men aged 65 and over rising from 8.5% to 15.6%, women are catching up in employment rates.

Expert Insights

Former pensions minister Ros Altmann noted that although the rise in employment among older women can be viewed positively, it raises concerns about those who endure ill health to support themselves. “The worry is that some are being forced to keep working through ill health because they have nothing to live on,” she said.

Similarly, Steve Webb, another former pensions minister, emphasized that the shift in pension age has altered how women perceive their career trajectories. With the pension age set to increase further, women’s work plans have inevitably changed.

Wider Context

The shift in employment dynamics for older women contrasts starkly with the rising unemployment rates among younger women aged 16 to 24. Recent figures indicate that 450,000 women in this age group are classified as not in employment, education, or training (NEETs), the highest rate recorded since 2016.