Connect with us

    Hi, what are you looking for?

    Financial News

    Economic Struggles of Elderly Individuals Who Entered Retirement Amid the Covid-19 Crisis

    An examination conducted by the Institute for Fiscal Studies (IFS) suggests that elders who chose to retire with the emergence of the Covid-19 pandemic are now grappling with economic hardships. The findings reveal that nearly half, or 48%, of those who transitioned into retirement throughout 2020 and 2021 are experiencing lower income levels, which has led to an increased incidence of relative poverty, a decline in overall happiness, and constrained pension resources in comparison to their predecessors.

    The IFS has put forward the idea that concerns associated with the pandemic and the resulting upheaval might have prompted a significant number of elderly workers to end their professional careers earlier than planned. Specifically, those aged between 50 and 70 who opted for retirement during the pandemic’s initial phase are dealing with a financial landscape that is notably less secure than those who concluded their working life a year prior.

    The analysis, underwritten by the Joseph Rowntree Foundation, uncovers that retirees from 2020-21 have decreased their average spending on groceries by £60 weekly. Furthermore, close to half of these retired individuals (49%) lack access to both private and governmental pensions, which is a stark contrast to the 43% recorded among retirees from the preceding year of 2019-20.

    To be categorized within “relative poverty,” the earnings of a pair must fall beneath £15,400. The document further emphasizes that senior retirees often battle to secure employment again, placing them at risk of enduring fiscal instability and amplified hardship in the face of prevailing elevated living expenses.

    Paul Johnson, the IFS’s lead, underlined the profound disparity between individuals retiring amidst the pandemic and those who did so subsequently. He noted that the more recent retirees, who mirror the financial conditions of pre-pandemic retirees, typically enjoy a more stable monetary status, with the benefit of private pensions and the capacity to indulge in pastimes such as golf.

    In the previous few years, numerous firms have raised the alarm over a scarcity of labor, with job openings surpassing the one million mark. Chancellor Jeremy Hunt has made it a priority to motivate those over 50 to make a comeback to the workforce. Confronting this issue, state officials have communicated their intention to support mature workers, encouraging workforce re-entry and citing a reduction of close to 300,000 in the count of individuals not engaged in employment.As part of these efforts, the financial department proclaimed a £70 million pledge to reinforce back-to-work programs for the over 50 age group. This commitment involves the rollout of a digital Midlife MOT service, designed to assist individuals in evaluating their competencies and seeking employment possibilities.

    Image Source: evrymmnt / Shutterstock

    You May Also Like


    Previously, in April, the CEO of Tesla and SpaceX, Elon Musk, caused quite a stir by revealing his intentions to procure the entire social...


    Concerns about rising prices are impacting the entire economy of the United States, and one sector that is particularly affected is the real estate...


    With rising expenses in fuel and power worldwide, particularly in the United States, the quest for sustainable energy sources has intensified. A significant historical...


    Kellogg, a major supplier of packaged foods in the United States and globally, has maintained overall centralized control of all its owned labels during...