Rising bills due to the cost-of-living crisis is the main factor driving retirees over 50 back to work, according to new data from the Office for National Statistics published today.
Over two thirds (69%) of 50 to 54-year-olds returning to work after a break were going back due to money worries.
Retirees between 50 and 65 considering returning were less likely to be able to afford an unexpected but necessary expense (61%), or own their house outright (57%) than those not considering returning (77% and 78%, respectively).
Those considering returning to work, perhaps after retiring early, were on average younger. Of those considering returning, 61% were aged 50 to 59 years; of those not considering returning, 33% were aged 50 to 59 years.
Helen Morrissey, senior pensions and retirement analyst at Hargreaves Lansdown, said the latest labour force data shows many older people who left the workforce during the Coronavirus pandemic have started returning to employment.
She said: “The latest labour force data shows signs of an “unretirement” with older people who left the workforce during the pandemic starting to return. There are many reasons why this could be – some people will have realised they miss the social interaction and routine that work brings and so decide to return – but there is no getting away from the fact that money remains a prime motivator.
“The pandemic made many people examine their lifestyles, and some may have thought they had enough saved to leave a stressful job behind and retire. The subsequent cost-of-living crisis has undermined this, with spiralling costs meaning many need to return to work to boost their retirement savings and supplement their day to day living costs.”
A separate report from Legal & General said 2.5m Britons plan to delay their retirement due to the cost-of-living crisis.
Almost two thirds (64%) of the over 55s still in work surveyed by the provider cited not being able to afford the loss of income while living costs are so high as the top reason for delaying retirement, other reasons included enjoying their jobs (26%), and not feeling ‘old enough’ to retire yet (25%).
More than one in seven of those surveyed (16%) were presently looking for additional work in order to boost their income, and one in 10 (10%) were concerned about the stability of their job in the current economic conditions.
Lorna Shah, managing director of retail retirement at Legal & General Retail, said: “Retirement can be tricky to navigate even without the backdrop of rising living costs, so it’s understandable that those approaching retirement aren’t sure what they want to do next.
“While many choose to retire later because they enjoy their work, there are millions of people who’re making this decision based on necessity, rather than personal choice.”
• Legal & General surveyed 2003 UK adults over the age of 55 and still in work between 8 and 17 November.
