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New figures from the Department for Work and Pensions (DWP) revealed that more people are working past 65.
The employment rate of people aged 65 and over reached 13.4% in 2026, the highest level recorded since reporting began in 1984.
The shift towards a later retirement in recent years has been largely driven by a rising state pension age.
In this article, we explore the factors that affect when people leave work and explain what the rising state pension age means for your retirement plans.
The average retirement age for both men and women is at record levels, according to the most recent data from DWP’s economic labour market status of over 50s series.
The average age at which women left work rose to 65.1 in 2026 – the highest level since annual reporting began in 1984. The average age at which men retire is 65.8, unchanged from 2025’s record high.
People are increasingly likely to work past their 65th birthday: the employment rate of people aged 65 and over reached 13.4% in 2026, the highest level recorded since reporting began in 1984.
This graph shows the employment rate of adults in the UK by age band since 1984.
Source: Department for Work and Pensions. 1992 to 1994 doesn't include Northern Ireland.
The state pension is the foundation of most people's income in retirement: benefit income (including the state pension) makes up 58% of single pensioners' income and 40% of pensioner couple's income , according to the DWP.
For many, working longer will be a financial necessity as the state pension age rises.
And the DWP’s figures show that state pension age plays an important role in when people retire.
Over the last ten years, the employment rate of 65-year olds has risen from 28.2% to 46.6%, likely largely driven by state pension age increases during that time.
In 2026, the employment rate decreased by 13.5 percentage points and the inactivity rate increases by a similar proportion as people reached state pension age.
The state pension age has risen multiple times since 2010, and is currently rising gradually to 67:
It is currently legislated to rise again to 68. This is currently being reviewed and could even be brought forward.
Find out more: will the state pension age rise sooner than planned?
Whether you’re unsure if you have enough to retire, or are already accessing your savings, our money guidance service can talk you through your options. Which? Money members get unlimited access to them via phone.
Find out moreBut for some, working longer isn't an option. Research by Standard Life found 51% of UK adults surveyed expected to work beyond State Pension age, but 18% said they couldn't continue in their current role beyond 60.
According to the DWP, around a quarter of people aged 50-64 are out of employment and not able to or not currently looking for work.
While around three in ten of those are retired, many in their 50s and 60s are unable to work due to health reasons or caring responsibilities.
Health issues are the most common barrier: 43.8% of those said being sick or disabled was the main reason they’re not looking for work.
Many of those approaching state pension age are in the ‘sandwich generation’ – supporting children and elderly parents simultaneously – with women disproportionately taking on caring responsibilities.
According to the DWP’s figures, women are more than twice as likely as men to cite ‘looking after home or family’ as the reason they’re not looking for work (16.5% vs 7.4%).
Researchers from the Institute for Fiscal Studies have highlighted how the state pension age rise from 65 to 66 more than doubled poverty rates amongst those about to qualify, affecting those out of paid work the hardest.
Charities, unions and researchers have called on the government to take action to prevent hardship and worsening inequality as a result of the current state pension age increase.
Earlier this summer, the Work and Pensions Committee backed calls to increase Universal Credit for 66-year-olds as a temporary measure, recommending that the additional support should be introduced before the end of this year, but the government is yet to respond.
According to research from the Centre for Ageing Better, around two thirds of people working past state pension age say they do so for non-financial reasons, such as enjoyment, health and purpose.
We’ve heard from multiple Which? Members who continued to work past state pension age for the satisfaction of it. Often this involved changing roles, reducing hours, or taking up work in a new sector.
One member we spoke to retired aged 60 from their demanding role in the NHS due to burn out, but soon found they missed work. They’ve since taken on part-time work in a related field, which they’re still enjoying ten years on: ‘I get the benefit of being part of a team without the burdens I was carrying before’ they said.
They felt there should be more support for those approaching retirement who’d like to continue working in a different capacity: ‘there’s so much scope for people to continue working in different ways, but it’s an issue that isn’t looked at’.
There's also a potential tax advantage when working beyond state pension age, as you no longer have to pay national insurance contributions.
Access to good work isn’t evenly distributed: Centre for Ageing Better found that people in their 60s who experience financial precarity are almost half as likely to be in work as those who are financially secure, often as a result of health issues, caring responsibilities and ageism in the job market.
It’s calling on the government to introduce a range of measures, from more support for flexible working to stronger implementation of existing protections against age-related bias.
The state pension age is currently rising gradually from 66 to 67, meaning there isn’t a fixed pension age for people born between April 1960 and March 1961. See our guide for when you’ll qualify, depending when you were born.
The state pension age is currently legislated to rise again to 68 between 2044 and 2046, but this is currently being reviewed and could happen sooner – by 2037 at the earliest.
The ‘normal minimum pension age’ is the earliest you can access money in your private pension in most circumstances.
This is currently 55, but is set to rise to 57 from April 2028. Those who turn 55 between 6 April 2026 and 5 April 2028 should pay particular attention to how the rules affect them.
The normal minimum pension age tends to sit about ten years below the state pension age, but this isn't set in stone.
If you plan to retire before state pension age, you’ll need to plan for how to bridge the gap in your income.
This could involve taking money from private pensions, using savings or income from investments.
If you have a defined contribution pension, you risk running out of money in retirement if you cash it in early, so it’s important to plan carefully. You can use our calculator to get an idea of how much your pension pot will be worth at retirement.
If you’re unable to work until state pension age, make sure you’re getting all the support you’re entitled to.
You can use Turn2Us’s confidential calculator to check what benefits you’re entitled to.
National insurance credits can help you build your state pension entitlement if you’re not working. Some credits are applied automatically, but others you need to claim – for example, if you provide care for someone but don’t support receive Carer’s Allowance, Carer Support Payment or Income support.
If you continue to work while receiving your state pension and private pension, there are few things to bear in mind.
If you’re under 75 you can still pay into a pension and receive tax relief on contributions. If you’ve started taking taxable income from your pension flexibly, the amount you can pay in while still receiving tax-relief will be capped at £10,000.
Income from your state pension, private pension and work will all be taxed as income. Deferring the state pension could reduce your tax bill, but you should think carefully before doing this as the increased payments could push you into a higher tax bracket when you start claiming it in the future.
Select the option that best describes your current situation.
