The "choice to retire" is disappearing for many, with more older people working than ever before as they struggle to keep up with the cost-of-living crisis.

A record 108,200 people over the age of 65 are now in the workforce, an increase of 5,700 since March and the highest figure on record, according to new data from the Central Statistics Office (CSO).

In addition, there are 159,200 people aged 60 to 64 still working, which is the highest that age demographic has ever seen.

Advocacy groups have raised concerns that older people must remain in work because they are still renting or paying mortgages and are struggling with soaring energy and food costs.

Seán Moynihan, CEO of the older persons charity Alone, said its position is that whether someone should continue to work or retire is up to them, but "that choice is disappearing for some".

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Mr Moynihan said: "People are making decisions that they don't want to make and they are maybe doing jobs that they don't want to keep, taking on that stress, that pressure, whether it is emotional, physical or mental and possibly damaging to their health.

"People basically got to a point where they thought they'd be able to retire, or need to retire, but now can't. That choice is disappearing for some people."

He added: "There are an awful lot of people reaching retirement age but also an awful lot of people looking at will they get to retire in the next five years and maybe that is gone for them."

Dr Nat O'Connor, policy specialist with Age Action, said there are several reasons why older people are working longer, including the cost of housing as well as declining purchasing power.

"You have a small but significant cohort of older people who are renting," he said. "We've talked to people who are working into their late 60s, early 70s, and they really have no idea how they are going to be housed once they can no longer keep up with rent, when they can no longer bring in an income.

"People in their 60s may still have a significant mortgage they have to finish paying. People are already reaching their 60s still paying off a mortgage or some sort of significant debt."

Dr O'Connor said inflation is also hitting people's savings and their spending power is diminishing.

He continued: "The spending power of their savings is going down. If you were lucky enough to have €10,000 in the bank, well then you'll have the spending power of €9,000 by the end of the year.

"At the same time, whatever occupational or private pension you have, it has lost spending power and it may not be tracking inflation. Often pensions are not. Then, of course, the State pension has lost spending power - it is going to lose €22.60 this year - which is why Age Action has called for a €23 [increase]."

The CSO Labour Force survey, published yesterday, showed the overall number of people working in Ireland is at an all-time high, reaching 2.55 million at the end of June this year.

It's an increase of around 205,500 on the same time last year, although Covid-19 lockdowns were still in place at that time.

It is the highest employment rate since this data series began in 1998, the CSO said.

There were 119,900 people classified as unemployed at the end of June, which is an unemployment rate of 4.5% for those aged 15-74.

All economic sectors had greater numbers in employment in Q2 2022 compared to pre-pandemic levels in Q2 2019.

There are 40,000 more people working in construction compared to last year, a total of 167,300.

In the activities sector, which includes arts, entertainment and recreation, there are 11,400 more people working, a total of 108,600.

But the agriculture, forestry and fishing sector had 2,100 fewer people working in it than in 2021.