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Saturday, April 20, 2024

More than 700,000 OAPS returning to work amid cost-of-living crisis

New figures reveal that more than 733,000 retired people will go back to work as cost-of-living bills escalate.

A third of those quizzed by My Pension Expert said that rising inflation and sharp rises in living costs had derailed their plans for retirement as they would no longer be able to sustain their desired lifestyle.

Inflation in the UK has spread to every corner of the economy with the cost of unavoidable living expenses from food, fuel, housing and energy prices – accelerating at the fastest pace in more than 40 years – and expected to rise more in 2023.

Research by the advisory firm said that six per cent of the nation’s retired people (12.2 million) would be looking to top up their pension pots as they lose value in real terms.

Less than half of respondents said they felt OK about their current financial plans.

Andrew Megson, executive chair of My Pension Expert, said: “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.”

UK employers have also expressed worry at the number of workers opting out of company pension schemes, which is set to rise due to financial pressure, according to research from fintech workplace pension provider, Cushon.

Its poll found that almost half of businesses (45 per cent) with more than 500 employees report that some workers are already leaving pension schemes, whilst 40 per cent have reported employees reducing their contributions to survive the cost-of-living crisis.

In 2011, the government abolished the default retirement age to give people longer, healthier lives.

Those over 65 can claim a state pension while still working, and have the added benefit of not having to pay National Insurance.

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