More than half a million people aged between 50 and 64 want to work but remain outside the UK labour market, with ill health and disability accounting for the majority of cases, according to official figures.
Department for Work and Pensions analysis showed that 585,000 people in the age group were without a job but either willing or wanting to work in 2026, an increase of 13,000, or 2 per cent, from the previous year.
Nearly two-thirds — 62 per cent, equivalent to 363,870 people — said they were not looking for work because they were sick, injured or disabled.
The figures highlight the economic cost of long-term health problems among older workers, while raising concerns about the financial consequences for people forced out of employment before they had planned to retire.
Marianna Hunt, personal finance specialist at Fidelity International, said: “This is a significant cohort of people and the consequences for individuals who fall out of the workforce in their 50s can be enormous.
“For some people, it can force them into an early retirement they can’t afford.
“Every additional year out of work means one less year of earning and saving into a pension, one less year for investments to grow, and one more year of retirement to fund.”
The DWP data also showed that caring responsibilities were a significant barrier to employment. Some 16 per cent of economically inactive people aged over 50 who wanted to work said they were not looking for a job because they were “looking after home or family”.
Overall, about 866,000 people aged 50 to 64 were either actively seeking employment or wanted to work but were unable to do so, down from approximately 876,000 in 2025.
The figures come against a broader rise in employment among older workers.
The employment rate for people aged 50 to 64 reached 72.2 per cent, up from 66 per cent in 2025 and close to the record level recorded in 2019.
Women are also remaining in the labour market for longer. The average age at which women leave the workforce has risen to a new record of 65.1 years, compared with 64.7 years in 2025.
For men, the average exit age remained unchanged at 65.8 years.
However, the figures reveal a persistent gender gap in economic inactivity. Some 29 per cent of women aged over 50 were economically inactive, compared with 22.2 per cent of men.
Women were also more than twice as likely as men to cite looking after their home or family as the main reason for not seeking work, at 16.5 per cent compared with 7.4 per cent.
Hunt said the changing demographics of the UK meant that retaining older workers was becoming increasingly important.
“With people living longer and state pension ages rising, many of us may expect – or need – to work for longer,” she said.
“But that only works if people who want to continue working have the opportunity to do so.”
Andrew Western, minister for employment, said older workers brought valuable experience to employers and that the government was seeking to improve support for those returning to employment.
“We know these workers bring a wealth of experience which employers are crying out for.
“We’re continuing to build on this progress by overhauling Jobcentres, offering dedicated support for older workers through midlife MOTs as well as collaborating with employers to enhance workplace support for women experiencing menopause symptoms.”
The figures underline a growing challenge for policymakers: encouraging longer working lives while addressing the health and caring barriers that prevent hundreds of thousands of older people from participating in the labour market.
For those unable to return to employment, the financial impact can extend well beyond lost wages, reducing pension contributions and investment time while potentially lengthening the period that retirement savings must support.
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