Money worries prompt retirees to consider return to work

Cost-of-living pressures are forcing more and more retired people to think about returning to work.

New research from Standard Life shows that one in seven retirees aged 55 or above are either going back to work or considering doing so.

This is largely for financial reasons, as over a third say their living costs have increased.

Meanwhile, 27% say they’ve found their pension isn’t providing enough income to life on.

Mike Ambery, retirement savings director at Standard Life, said: “Recent retirees couldn’t have foreseen the cost-of-living issues that have squeezed their retirement incomes.

“Many are now being forced to rethink their plans and return to work to supplement their income.”

Over-50s struggling to get back to work

While many have - reluctantly in some cases - decided to go back to work, they’re often finding it’s not easy to find a job.

Catherine Foot, director of Phoenix Insights, said this is partly because there aren’t enough opportunities available, as well as a lack of “good quality flexible work that people working later in life desire”.

“The over-50s face significant barriers to re-entry,” Ms Foot commented. 

She warned that being out of work before state pension age is a “major driver of pre-retirement poverty”.

“So it’s critical the government and employers better support this group to remain in employment.

“Providing access to flexible work is one of the most important factors to enabling this.”

Today’s workers must engage with pension

The findings are a reminder to today’s workforce that they should be on top of their retirement planning right now.

As Mr Ambery points out, fewer people currently saving for retirement have gold-plated employer pensions that guarantee a set income in retirement.

This, he said, means more of us have to “consciously engage and manage our own arrangements”. 

“It’s vital for today’s workers to take an interest in their pension throughout their careers,” Mr Ambery commented.

“Being aware of how much you’re saving now and if it’s likely to grow to be enough for you in retirement is just one simple step that can help people prepare for their desired retirement.”

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