Record 730,000 retirees returning to work to top up pension as living crisis pushes older Brits to the brink
More than 733,000 retirees across the UK are preparing to return to work as the cost-of-living crisis escalates, according to new research shared with City PM this morning.
For 12 per cent of those in retirement, rising inflation has “upended” their retirement plans.
More than a third of UK retirees are worried they will no longer be able to sustain their desired lifestyle in retirement as the cost-of-living increases so sharply, the advisory firm My Pension Expert found.
Inflation in the UK has reached unprecedented levels and is expected to rise to 15 per cent or higher by the start of 2023.
The UK has a population of approximately 12.2m retirees.
The research found that 6 per cent of retirees, around 733,000 people, are likely to return to the workforce in the coming months to top up their pension pots as a result of the cost-of-living crisis.
Less than half of respondents said they are confident in their current financial strategy.
The study also showed that despite concerns over their finances and potentially having to ‘unretire’, just 5 per cent of retirees in the UK have sought independent financial advice in 2022.
“As the cost-of-living crisis bites harder, we’re seeing a worrying spike in ‘unretirement’. It’s a hugely important issue – after working and saving for decades, having to re-enter the workforce will be a bitter blow to many retirees,” said Andrew Megson, executive chairman of My Pension Expert.
“The reality is that many people’s pension pots are losing value in real-terms amid sky-high inflation.”
Andrew Megson
“And as such, their hard-earned retirement funds won’t stretch as far or sustain the same lifestyle. That’s why it’s so important those approaching or in retirement take the time to assess their financial strategies and, as necessary, consult experts,” he explained.