Cost-of-living crisis: over 700,000 retirees preparing to return to work

October 14, 2022

A new survey has revealed how the cost-of-living crisis has affected retirees across the UK:

  • 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

 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 by My Pension Expert.

The UK’s leading at-retirement adviser commissioned an independent survey of 2,000 UK adults. It found that, for 12% of those in retirement, rising inflation has “upended” their retirement plans.

More than a third (34%) 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. 

Inflation in the UK has reached 9.9% and is expected to rise to 15% or higher by the start of 2023. 

The UK has a population of approximately 12.2 million retirees. My Pension Expert’s research found that 6% 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 (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 ‘unretire’, 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 ‘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. 

“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.”

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