Many over-50s in the UK are facing challenges in the job market, with government figures showing that almost 900,000 people aged 50 to 64 are not working but would like to be. This situation is highlighted by Fidelity's Longer Working Lives Index, which placed the UK last among G7 countries for supporting over-55s to remain in employment.
For an individual who lost their job at 56 with £100,000 in savings and £430,000 in pensions, spending £30,000 annually, financial modelling suggests a risk of depleting their pension and other savings by age 82 if they retire immediately. This forecast assumes entitlement to the full state pension from age 67.
Continuing to earn for longer, even in a lower-paid or part-time role, could significantly reduce this risk. For example, finding a job by September 2027 paying £50,000 per year and working until age 65 could result in a pension worth around £850,000, with savings potentially lasting until age 100. Similarly, a part-time role paying £25,000 annually, worked until age 70, could also see money last until age 100.