Older people with vital skills are being pushed out of the workforce, experts have warned. Labour has been told it will not achieve its goal of an 80% employment rate unless it takes action to keep older men and women in work.

The Centre for Ageing Better warns that 1.1 million working-age people in their sixties are living in poverty – nearly one in four of this age group.

The state pension age will gradually increase to 67 between 2026 and 2028 and there is strong concern many older people will struggle to make ends meet if they are not in a job.

Campaigners say older workers must be able to take time off for caring responsibilities and for health reasons.

Emily Andrews of the Centre for Ageing Better said: “The 60-64 age group has the highest poverty rates for any adult age group over 25. The last time the state pension age increased, poverty rates doubled for those on the cusp of eligibility.”

Christopher Rocks of the Health Foundation added: “We know that when people in their 50s and 60s leave the workforce it can harm both their financial security and long-term health.”

He said the Government must “take action” to help people “remain in work when health issues arise”.

The 50-plus Employment Taskforce – which brings together a host of organisations which want to see older workers thrive – is calling on the Government to set a target of raising the employment rate of 50-59-year-olds to 80% and the rate for 60-66-year-olds to 55% within the next 10 years.

Alice Martin, Head of Research, Work Foundation at Lancaster University, said: “As the pension age rises and worker shortages in key sectors bite, supporting older workers to stay in employment is essential to sustaining our economy. Without action, millions risk being pushed out just when we need them most. We need jobs that support good living across our lifetimes – including adequate paid time off for health and caring responsibilities.”

Patrick Thompson of Phoenix Insights warned an 80% employment rate will be “impossible” without “action to make longer working lives a genuine reality”.

He called for the Government to adopt targets for getting people in their 50s and 60s into work.

“This would not only help to achieve the government’s economic growth mission but also raise people’s living standards both now and in the future,” he said.

Caroline Abrahams of Age UK, said: “With all the years of experience, knowledge, and wisdom that older workers have it’s imperative that everyone who wants to work is able to do so and that employers recognise how much value this age group can add to their business.

“However older workers face many barriers, particularly if they are carers, have a health condition, or have recently found themselves unemployed and need to update their skills . And this is not to mention the ageism that pervades the labour market and prevents many in this age group from fulfilling their potential. It’s crucial that the next Government looks urgently at how to facilitate more – and better – working in later life, in terms of both enabling people to stay with their existing employer, and to find alternative work if the need arises.”

She said it would be a “real tragedy” for individuals and the nation if the country fails to tap into this talent pool.