09.10.2024

Nearly three in 10 retirees are considering a return to work as living costs rise

Nearly three in 10 (29%) UK retirees are considering a return to paid work to cope with rising living costs, according to new research from Indeed Flex, an online platform for flexible and temporary work.

The survey of 1,000 Brits aged over 55 found that more than half (56%) say their ability to save for retirement has been impacted by inflation, while a third (33%) have been forced to delay their retirement.

Nearly one in seven (13%) respondents said they plan to delay retirement by more than five years, while a further 17% said between three and five years.

Pensioners and retirees on fixed incomes are particularly susceptible to rising prices and with an increase to the state pension age, older people are being forced to work longer or go back to work.

Official figures reveal that the average age at which people retire reached a new record high in 2024, rising to 65.7 years for men and 64.5 for women.

Meanwhile, the research by Indeed Flex found that 15% of over-55s have retired and gone back to work. The main reason for unretiring was because they needed additional income (53%), while nearly a fifth (18%) wanted to keep busy and 11% wanted more social interaction.

Nearly six in 10 (57%) who went back to work because they needed the additional income said it was to cover household bills and essential spending.

Worryingly, as many as one in five (20%) over 55s only have a state pension to fall back on in retirement and 4% of older people say they can’t afford to ever retire.

Novo Constare, CEO and Co-founder of Indeed Flex, said: “As living costs continue to rise in the UK, many retirees on fixed incomes are being forced back to work.

“While some older people choose to return to work for their own reasons, such as greater social interaction and to remain mentally and physically active, others have less of a choice.

“Retirees who only have a state pension to live on or perhaps a small workplace or private pension, are the most likely to have to go back to paid work when their outgoings increase.

“For those over 55s considering a return to the workforce, temporary jobs can offer an ideal solution. These roles can provide extra income without the long-term commitment of permanent positions, which can be appealing for anyone reluctant to dive back into a permanent position.

“Whether it’s to supplement their pension or for money to spend on their family or to enjoy a holiday, it’s important that older people returning to work do so on their own terms as this can provide a sense of renewed financial security and independence.

“Meanwhile, for employers, tapping into this demographic of motivated retirees can be a valuable solution to current staffing shortages and retention challenges. Retirees bring experience, reliability, and a strong work ethic to the table.

“Employers who recognise the potential of this talent pool can benefit from their expertise while also addressing critical gaps in their workforce.”

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