More than a quarter (26 per cent) of retirees aged over 55 were ‘forced’ to retire earlier than they expected due to ill-health, redundancy or caring obligations, research from Just Group has found.

Its survey of retired and semi-retired over-55s showed that 45 per cent retired earlier than planned.

Of those who retired earlier than planned, the majority stated it was because they were ‘forced’ our of the workforce due to factors beyond their control, rather than choosing to retire for more positive reasons.

A third (33 per cent) revealed they retired earlier than expected due to ill-health or physical impairment.

A further 15 per cent were either made redundant or were unable to find a job, while 10 per cent said they needed to provide care for a family member.

Just Group group communications director, Stephen Lowe, said the findings highlighted the value of financial planning for those starting the transition towards retirement.

“This new research is evidence of the impact unexpected events can have on people’s later lives,” he stated.

“For over a quarter of retirees, early retirement is more of an unwelcome drama than a dream as they are forced out of employment due to events beyond their control.

“People cannot bank on being able to choose the exact point when they retire and in those circumstances a back-up plan becomes extremely valuable.

“It is worrying that so many people are dropping out of the labour market without knowing whether their pensions and savings will be sufficient.”

One in five (20 per cent) of survey respondents retired earlier than expected because their pension savings were large enough to support them in retirement.

However, economic activity due to chronic health conditions amongst those aged between 50 and 64 has “soared” since the pandemic.

“Life’s busy and people have competing demands for their attention but taking a bit of time to work out your ‘what if’ plan will be well worth it should life take an unexpected turn,” said Lowe.

“A great place to start is Pension Wise. It offers free, impartial, independent and government-backed guidance designed to help over-50s understand their pension options.”

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