UK Retirees Return To Work Due to Cost-of-Living Crisis

Just under three quarters of a million retirees from around the United Kingdom are preparing to return to work due to the escalating costs of their everyday essentials that they need in their lives.

That's according to new research conducted be My Pension Expert who conducted a survey which looked in to how the cost-of-living crisis which is affecting people around the UK now is affecting their general way of life and how they manage to keep themselves fit and healthy in the present time.

The survey also found that:

12% say soaring inflation has “upended” their retirement plans

34% are worried they will no longer be able to sustain their desired lifestyle in retirement

6% of retirees (733,000 people) say they are likely to return to the workforce in the coming months to top up their pension pots

The survey which was commissioned by the UK's leading at retirement salary advisor took a sample of around two thousand UK adults and found that for 12% of those in retirement, rising inflation has “upended” their retirement plans. An increasing number of people who are in retirement have rising worries that they won't be able to maintain their chosen standard of living after giving up work due to the amount of extra costs they are lumbered with once they retire. All of this is happening at a time when they should be able to put their feet up and relax or go and explore different parts of the world following their many years of service in employment.

The inflation rate in the UK is currently just under 10% and is expected to rise to 15% or higher by the start of 2023.

There are just over twelve million retirees in the UK. The research conducted by My Pension Expert found that retirees need to top up their pension pots as a result of the increasing costs in shops which mean that there is now a cost-of-living crisis. Less than half (46%) 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 ‘retire’, just 5% of retirees in the UK have sought independent financial advice in 2022.

Andrew Megson, executive chairman of My Pension Expert, said: “As the cost-of-living crisis bites harder, we’re seeing a worrying spike in ‘semi-retirement’. 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. 

“The reality is that many people’s pension pots are losing value in real terms amid sky-high inflation. 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.

“Despite all the challenges they are facing, a mere 5% of retirees have spoken to an independent financial advisor this year. Some might think it’s too expensive; others might feel their pension pot is too small to warrant it. But these are misconceptions. Advice is for everyone – it helps each saver develop a financial strategy to best support their individual circumstances and needs. I would encourage anyone who’s worried about the state of their retirement finances to reach out for advice from credible, regulated sources.”

This links to the increasing cost of energy as due to the on going conflict between Russia and Ukraine, the price of raw materials which come from the region to produce energy have risen in price dramatically meaning that more people who thought they may have had enough money to live on in their retirement have suddenly realised that they need more money to cover the increasing bills. To help with these increasing energy costs, the government is giving people round the country certain discounts depending on their circumstances to ensure they can manage to pay their energy bills and are not left out in the cold.