Working from home can help people delay retirement and build their financial resilience, data from the Office for National Statistics (ONS) shows.
By contrast, an early exit from the labour market for people aged 50 and over can damage their finances. Some leave voluntarily, while others leave due to ill health or caring responsibilities.
ONS said: “It appears that working from home has some benefits for older workers and may enable some to stay in the labour market for longer, however, working from home has not been an option for all.”
It can mean people are able to work longer than they otherwise would have.”
Helen Morrisey, Hargreaves Lansdown
Helen Morrissey, senior pensions and retirement analyst at financial services firm Hargreaves Lansdown, said: “Anything that enables people to stay in work for longer and benefit from increased income and pension contributions is welcome.
“Leaving the workforce early can have an enormous effect on someone’s financial resilience in retirement as well as their physical and mental wellbeing.
“This data shows the shift to working from home has had a positive effect on older workers in terms of their health and work-life balance.
Time saver
“Not having to commute to an office every day frees up time and can also mean you are less exposed to illness. It can mean people are able to work longer than they otherwise would have.”
She added: “The increased flexibility would be particularly welcomed by women who often juggle working with caring responsibilities, however, it remains to be seen if working from home remains the norm as we emerge from the pandemic.”
The study by ONS – whose full survey report can be found here – showed that at age 50, around 7% of women in the UK are economically inactive due to looking after home or family. This compares to just 1.7% of men.
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