Struggling retirees forced to return to work

Almost a fifth of retirees are being forced to return to work or to consider doing so because of struggling finances, research from Standard Life has revealed. Some 14% of retirees aged over 55 have gone back into work, while a further 4% are considering returning to work. The reason? Their living costs have increased and their pension is not sufficient to fund retirement, according to Standard Life’s Retirement Voice report published today. Men are more likely to have unretired, with 16% saying they have done this while 5% are also considering it, compared to 12% of women who have gone back to work and 4% for whom that is a consideration. Almost two-thirds (64%) of over 55s who have unretired say that income issues have been the driving force behind their decision. A third (32%) found their living costs have increased more than they’d expected, meaning they’ve needed to return to work, while 24% realised their pension was not providing enough income to live on. Meanwhile, three in ten (31%) want to earn more money so they can treat themselves more in retirement. Other retirees have returned to work or are considering doing so due to feeling bored (39%), lonely (19%) or unhappy (15%). The analysis comes after the Pensions and Lifetime Savings Association (PLSA) increased the amount the income they expect would be needed to provide a single person with a ‘moderate’ standard of living in retirement by 34%, from £23,300 in 2022/23 to £31,300 this year. The higher amount reflected higher food, energy and motoring costs as well as an extra £1,000 a year added to help family members who are struggling with their own bills. More than one in ten people (12%) are now delaying their plans to retire, while 3% are taking on an additional job to boost their income, according to Standard Life. Gail Izat, managing director for workplace at the firm, which is part of Phoenix Group, said: “Many people have had to rethink major life decisions, including those around retirement – some have delayed their planned retirement dates, or have returned to work after having previously retired.” She said the cost of retirement is set to remain high, with the updated PLSA figures highlighting the impact of retirees helping younger family members who have been struggling to pay their bills due to the rising cost of living. She said: "Providers and employers have a big role to play in helping people to engage with their pension and build up a strong pension pot from as early an age as possible, giving them the best chance of securing the lifestyle they hope for in retirement."

Struggling retirees forced to return to work

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