Unretirement: Older Workers Returning to Work in the UK

Unretirement means returning to work, or staying in work, after retiring or reaching pension age. It is not an official category, but ONS data show 13.2% of people aged 65 and over in the UK were employed in June to August 2026, up from 8.8% in 2011. No default retirement age exists, and employees stop paying National Insurance at State Pension age.

At a glance

• Employment rate (UK, June to August 2026, ONS): 72.3% for ages 50 to 64 and 13.2% for ages 65 and over.
• The full new State Pension is £241.30 a week in 2026/27. Deferring for at least 9 weeks adds 1% for every 9 weeks, just under 5.8% for each year.
• Taking taxable cash from a defined contribution pension can cut your annual allowance for further pension saving to £10,000 (the money purchase annual allowance).
• Employees stop paying Class 1 National Insurance at State Pension age, but Income Tax still depends on total income above the £12,570 Personal Allowance.
• Pension Credit counts earnings as income. Attendance Allowance is not means-tested.

What is unretirement, and how many older people work?

People use the term for anyone who retires and then returns to paid work, or who keeps working past the age they once planned to stop. Reasons range from income and boredom to wanting a different, part-time role. The Office for National Statistics (ONS) does not count “unretirees” separately, but it does publish employment rates by age from the Labour Force Survey.

In June to August 2026 about 1.75 million people aged 65 and over were in employment. ONS warns that short-term changes in these survey estimates can be volatile, so the long-term direction is more reliable than any single quarter. The 65-plus rate has risen across the period, while the 50 to 64 rate has been broadly flat since 2019.

Can you keep working after State Pension age, and what are your rights?

Yes. GOV.UK says you can usually work for as long as you want to, and that the default retirement age, a forced retirement age of 65, no longer exists. An employer can force retirement at a certain age only with a good reason, for example physical demands of the job or an age limit set by law. When you apply for a new job you do not have to give your date of birth.

State Pension age is 66 for people born before 6 April 1960. It is rising to 67 in monthly steps for people born between 6 April 1960 and 5 March 1961, between 2026 and 2028. The GOV.UK State Pension age checker will give your exact date.

Age is a protected characteristic under the Equality Act 2010, so job applicants and employees are protected from direct and indirect discrimination, harassment and victimisation. Read ageism explained for how to challenge it. All employees can also make a flexible working request from their first day in a job, covering hours, start and finish times, days and place of work. The employer must decide within 2 months, unless a longer period is agreed, and can refuse with a good business reason. Employees can make 2 requests in any 12 months.

Should you claim or defer your State Pension?

If you do not claim at State Pension age, it automatically defers. For people reaching State Pension age on or after 6 April 2016, GOV.UK says you can take deferred pension as increased weekly payments, a one-off arrears payment of up to 52 weeks, or both.

You must defer at least 9 weeks to get increased payments. GOV.UK says it takes over 15 years to get back 52 weeks of deferred pension through the higher weekly rate. Extra payments may be taxed, and you cannot build up deferred State Pension while you or your partner get certain benefits. See Attendance Allowance and Pension Credit and benefits for pensioners over 70.

Can you take a pension and work at the same time?

Yes, once you reach the age in the scheme rules, which is not normally before 55 for personal and workplace pensions. GOV.UK notes that reducing your working hours could affect a workplace pension, so check with your employer. Up to 25% of a pension can usually be taken as a tax-free lump sum, to a maximum of £268,275, and the rest is taxed as income.

The key rule for people who keep saving is the money purchase annual allowance. If you flexibly access a defined contribution pension, for example by taking cash from a flexi-access drawdown fund or taking cash from a pot, your annual allowance for further money purchase contributions falls to £10,000. Contributions over that, including from an employer, can lead to a tax charge. Speak to your pension provider or a regulated financial adviser before taking money, especially if you plan to keep paying into a pension.

How are tax and National Insurance affected?

The Budget on 28 October 2026 announced a Pension Tax Allowance for people over State Pension age whose total income is at or below the full new State Pension, due to run from 6 April 2027 to 5 April 2030 and to be legislated in Finance Bill 2026-27, with a taper just above the threshold. It was an announcement at 9 November 2026, not yet law, so check GOV.UK for the final rules before relying on it.

How does work affect benefits?

• Pension Credit: earnings from employment and self-employment count as income, and changes such as starting work should be reported. See what is Pension Credit.
• Attendance Allowance: GOV.UK says it is not means-tested, so earnings and savings do not affect it. See Attendance Allowance guide.
• Carer’s Allowance: £86.45 a week in 2026/27, with earnings of no more than £204 a week after tax, National Insurance and expenses. GOV.UK says if your State Pension is £86.45 a week or more, you will not get a Carer’s Allowance payment. See Carer’s Allowance earnings limit.

Use the Attendance Allowance checker if you or a relative may qualify, and read juggling work and caring if you are caring while working.

Where can you get practical help?

• Jobcentre Plus can help if you are out of work, including training such as IT skills, and can signpost to jobs locally. GOV.UK points older workers to the Find a job service.
• Apprenticeships are open to almost anyone over 16.
• Acas gives free advice on age and the workplace.
• Age UK offers advice on finding a job as an older worker, and the Centre for Ageing Better publishes guidance on age-inclusive recruitment.

Frequently asked questions

Can I claim my State Pension and keep working?

Yes. Once you reach State Pension age you can claim it while working. If you delay, your pension increases by 1% for every 9 weeks you defer, as long as you defer at least 9 weeks, which works out at just under 5.8% a year.

Do I pay National Insurance after State Pension age?

Employees do not pay Class 1 National Insurance once they reach State Pension age. Self-employed people stop paying Class 4 from 6 April after reaching State Pension age. Income Tax can still apply depending on total income.

What is the money purchase annual allowance?

It is a lower annual limit of £10,000 on contributions to defined contribution pensions, which applies after you flexibly access a pension, such as by taking taxable cash from drawdown. Going over it can mean a tax charge.

Can my employer make me retire?

Not just because of your age. The default retirement age no longer exists. An employer can set a compulsory retirement age only with a good reason, such as the physical demands of the job or a legal age limit.

Will working affect Pension Credit?

Yes. Earnings from employment and self-employment count as income for Pension Credit, so working may reduce what you receive. Report any change, including starting or stopping work, straight away.

Where to get help next

If you are also supporting a parent, see sandwich carers, and compare costs with the funding checker. Browse local support through find care.

Sources

• Office for National Statistics: A05 SA, Employment, unemployment and economic inactivity by age group
• GOV.UK: Working after State Pension age
• GOV.UK: Defer (delay) your State Pension
• GOV.UK: Check if you have gone above the money purchase annual allowance
• GOV.UK: Tax when you get a pension
• HM Treasury: Budget 2026

Reviewed by The Care Panel team on 9 November 2026. This guide is general information about care in England, not legal, medical or financial advice. Rules and rates change; check with your council or an adviser before making decisions.