More than one in ten people over State Pension age in the UK are still working — and the number has climbed steadily over the past decade. Between July 2023 and June 2024, roughly 1.12 million people aged 66 and older remained in paid work, up from 880,000 a decade earlier. That 9.5% figure sounds modest until you consider what it means in real terms: nearly a quarter of a million more older adults are clocking in past the point when the State Pension kicks in.
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This article is general information only and does not constitute professional advice. For your specific situation, consult a qualified professional.
The bigger story sits underneath those totals. Research from Queen’s University Belfast, published in the Journal of the Royal Statistical Society, splits older workers into two camps: those who choose to keep working and those who are forced to. The difference matters because the two groups need completely different kinds of support — and the gap between them is not evenly spread. Women, ethnic minorities, people in routine manual jobs, and those still paying a mortgage are far more likely to be working out of necessity rather than preference. Meanwhile, the State Pension age is rising to 67 between 2026 and 2028, with further increases already planned. That means the decision to work one more year is becoming less optional for more people.
If you’re approaching retirement age and wondering whether to keep going, the answer depends heavily on why you’d be working — and what the rules cost you if you get the sequence wrong. Here’s what you actually need to know.
The term you’ll hear more often now is unretirement — when someone who has formally retired returns to paid work. It’s not a niche trend. Roughly 11% of the entire over-50 demographic in the UK has done it, and 77% of employers now view it positively. What I tend to notice is that people assume unretirement is always a fallback. For many it is. But for a large minority, it’s a deliberate choice driven by mental stimulation, social connection, or simply not feeling ready to stop.
Who Works by Choice and Who Works Because They Have To
The research classifies reasons for working past retirement into two clear buckets. Choosing to work means you’re doing it for desirable extras, because you’re not ready to stop, because your employer needs your experience, or because flexible hours make it manageable. Being forced to work means you’re covering essential bills or trying to boost an inadequate pension pot. The demographic splits are stark.
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| Demographic factor | More likely to be forced | How much more likely |
|---|---|---|
| Gender | Women | 25% more than men |
| Ethnicity | Asian workers | 120% more than white workers |
| Health | Those with long-term illness | 33% more than those without |
| Marital status | Single or unmarried | 56% more than married/partnered |
| Occupation | Routine manual workers | 67% more than managerial/professional |
| Housing | Mortgage holders or renters | 117% more than outright owners |
These aren’t small differences. A woman in a routine manual job who rents her home and has a long-term health condition faces a radically different retirement reality than a male homeowner in a managerial role who owns his property outright. The first person is likely working because she has to. The second is far more likely to be working because he wants to. That distinction matters for how you plan — and what safety nets you need in place.
On the broader scale, the Office for National Statistics reports that the employment rate for people aged 50 to 64 now sits at 71.6%, while economic inactivity in that age group has fallen to 26.1%. But the average exit age from the labour market keeps climbing — 65.8 for men and 64.7 for women, both the highest since records began in 1984. That extra year or two of work is becoming the new normal.
The MPAA is the single most consequential rule change for anyone returning to work after accessing a pension. Once triggered, it stays in place. If you’re planning to work one more year, the order matters: contribute first, then draw — not the other way around. Getting that sequence wrong can cost you tens of thousands in lost tax relief over time. For anyone navigating these trade-offs, getting personalised financial guidance on contribution sequencing can save far more than the cost of the advice.
Where the Gap Widens — and Who Pays for It
The research points to several places where people get caught out. These aren’t minor oversights. Each one has a measurable cost that compounds over time.
The MPAA is triggered without warning
Most people don’t realise that taking a single lump sum from a defined contribution pension — even a small one — triggers the MPAA. Once you’re subject to it, your annual allowance drops to £10,000. If you then return to work and want to keep contributing, you’re capped. The fix is straightforward: don’t access your pension until you’re certain you won’t be returning to work, or at least until you’ve made your maximum contributions first. If you’ve already triggered it, you can still contribute up to £10,000 a year, but any excess incurs a tax charge.
NI record gaps that could have been filled
The full new State Pension is £221.20 a week (2025–26 rate), but you need 35 qualifying National Insurance years to get it. Many people who return to work after 66 assume their NI contributions stop mattering. They don’t. If you’re under State Pension age and working, you continue building qualifying years. If you’re over State Pension age and working, you no longer pay NI — but you also can’t add more years. The mistake is not checking your NI record before you reach State Pension age, when you still have time to fill gaps through voluntary contributions. A single missing year can cost you roughly £5.30 per week in pension income — over £275 a year, every year of retirement.
Underestimating how much pension pot you actually need
27% of returners say their pension fell short. That’s more than a quarter of people who thought they had enough and discovered they didn’t. The gap is especially wide for women, who are 25% more likely to be forced back to work, partly because career breaks for caregiving meant they couldn’t accumulate sufficient pension savings. The gender pension gap remains stubbornly wide. If you’re approaching retirement and your pot looks thin, working one more year while maxing out contributions can make a meaningful difference — but only if you haven’t already triggered the MPAA.
Age discrimination in hiring
Over half of professionals aged 60 and older still feel overlooked during hiring processes because of their age. Despite 77% of employers saying they view returning retirees positively, the experience on the ground is different. If you’re planning to return to work, the practical implication is that you may need to apply to more roles, lean on professional networks, or consider self-employment or consultancy rather than traditional employment. The research shows that 39.9% of older workers are in higher managerial or professional roles — occupations where networks and reputation carry more weight than CV screening.
How to Make Working in Retirement Work for You
If you’re considering working past State Pension age — whether by choice or necessity — the mechanics matter as much as the motivation. Here’s what to think through at each stage.
Check your NI record before you reach State Pension age
You can check your National Insurance record online through GOV.UK. Look for gaps in the last six tax years — those can still be filled with voluntary Class 3 contributions at £17.45 per week (2025–26 rate). Each missing year costs you roughly 1/35th of the full State Pension. If you’re a woman who took career breaks for childcare, you may also qualify for Home Responsibilities Protection or Child Benefit credits that count toward your NI record. Don’t assume your record is correct — check it.
Decide on the order: contribute first, draw later
If you’re planning to work one more year and you have a defined contribution pension, the sequence is critical. Make your maximum pension contributions while you’re still earning, then access the pension after you stop work — not before. If you take money out of the pension first and then go back to work, the MPAA locks your future contributions to £10,000 a year. That’s a loss of up to £50,000 in annual tax-relieved contribution headroom. For those navigating complex trade-offs between contribution limits and drawdown timing, consulting a financial specialist can clarify which order minimises your tax bill.
Understand how working affects your State Pension and benefits
If you’re over State Pension age and working, you no longer pay National Insurance, so working doesn’t increase your State Pension further. But it also doesn’t reduce it — you can earn as much as you like without affecting your State Pension entitlement. However, if you receive means-tested benefits such as Pension Credit, Housing Benefit, or Council Tax Support, your earnings may reduce what you’re entitled to. Pension Credit is particularly important: it tops up your income to a minimum of £218.15 per week for single people (2025–26 rate), but every pound of earnings above that threshold reduces the credit. If you’re returning to work, check whether you’d lose more in benefits than you’d gain in wages.
Plan for the State Pension age rise
The State Pension age rises to 67 between 2026 and 2028, and further increases to 68 are already on the legislative horizon. If you’re in your early 60s now, your expected retirement date may shift by one or two years compared to what you originally planned. The ONS data shows that the State Pension age has a statistically significant impact on employment rates — from age 65 to 66, employment drops by 12.8 percentage points and inactivity rises by 13.9 percentage points. That cliff edge is moving. If you’re planning around a specific retirement date, factor in that the goalposts may shift before you get there.
- Check your NI record online at GOV.UK for gaps in the last six tax years
- Confirm whether you’ve already triggered the MPAA by accessing a DC pension
- Calculate how much Pension Credit or other means-tested benefits you’d lose if you return to work
- Review your State Pension age at gov.uk/state-pension-age — it may have changed since you last checked
- Estimate your total retirement income including State Pension, workplace pension, and any part-time earnings
Frequently Asked Questions
What happens to my State Pension if I keep working past 66? ▾
Can I contribute to a pension after I’ve started drawing from it? ▾
Will working in retirement affect my Pension Credit? ▾
What’s the difference between being forced to work and choosing to work? ▾
How do I check if I’ve triggered the MPAA? ▾
Is age discrimination a real barrier for returning retirees? ▾
One Extra Year Can Change More Than Your Income
The decision to work one more year past retirement age isn’t just about the money — though for many, the money is the deciding factor. The research shows that nearly 876,000 people aged 50 to 64 are either actively seeking work or willing to work but currently outside the labour market. That’s a huge pool of people who want or need to be earning but aren’t. Meanwhile, the State Pension age is rising, the MPAA is catching returners off guard, and the gap between those who choose to work and those who are forced to work is widening along predictable demographic lines. The one extra year that looks like a choice today may become a necessity tomorrow — and the rules around when and how you contribute, draw, and claim benefits will determine whether that year helps or hurts.
Remember: this article is general information only. For advice on your specific situation, speak to a qualified professional.
If this was useful, you might also want to read Is Part-Time Work the Perfect Retirement Recipe? A UK Exploration.
Sources and Further Reading
Second Careers in Retirement: Staying Relevant and Earning — Practical guidance on transitioning into a new role or industry after State Pension age.
Is Early Retirement a Myth? UK Pros and Cons to Consider — Weighs the trade-offs of retiring early against the rising likelihood of working longer.
The Conversation (2025). Who chooses to work and who is forced to after retirement? 🔗
SemiRetired (2025). The Rise of Unretirement: 2.8 Million UK Retirees Have Returned to Work. 🔗
ONS (2025). Economic labour market status of individuals aged 50 and over, trends over time: September 2025. 🔗
Raconteur (2024). The great unretirement: older workers and recruitment. 🔗
