Older UK workers driven into poverty after early retirement due to pandemic.

According to the Institute for Fiscal Studies (IFS), fifty percent of seniors who quit the UK workforce due to major layoffs during the first year of the Covid epidemic ended up living in relative poverty.

The IFS claims that many workers were probably driven into early retirement even if they did not have a sizable amount of public or private pension income to sustain them, which would have worsened their quality of life and wellbeing.

People between the ages of 50 and 70 who gave up their jobs in the previous year lowered their food expenses by an average of £60 per week in 2020–21, which is a greater reduction than the previous year’s group of people who did not significantly alter their spending patterns.

Compared to older persons who ceased working in years past, those who quit working in 2020 and 2020-21 were less likely to get pension income, with about half of them having no access to either private or state pensions, down from 43% in 2020 and 2020-21.

Despite a drop in overall poverty rates that year, IFS research supported by the Joseph Rowntree Foundation found that 48% of people in this age group who quit working in 2020–21 were in relative poverty.

The paper cautions that because older workers sometimes never return to the workforce, this population may be subject to higher hardship and long-term poverty in the midst of the cost-of-living issue.

According to the study, “These negative consequences are only observed in seniors who initially were inactive in the initial year of the pandemic.”

The study authors observed that many older people who left the labor did not do so in luxury, raising the possibility that many may have been forced into early retirement even without having access to the pensions they would have required to survive.

As a result, living conditions and general well-being will have declined.

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