A new study by the Royal London shows the impact of the cost of living crisis on older workers’ retirement plans.
A third of workers aged over 55 who were planning to retire in the next five years are changing their retirement plans due to the current cost of living crisis, according to new research by the Royal London.
The study found 39% of pre-retirees are concerned about being able to afford to live the lifestyle they want and 38% are worrying about having enough money to get by. Outside of money, pre-retirees are also concerned about staying fit and healthy (52%) and one in ten (12%) are worried about staying in touch with friends and family.
Six in 10 (58%) people say they would consider working in retirement, citing remaining active (59%) and money (45%) as the two main reasons for doing so. Forty per cent say they would work if it enabled them to do more things they enjoyed and 45% say they would work if they were struggling to pay their bills.
Meanwhile, the majority of over 55s (71%) say they are yet to achieve their life goals with money being the biggest barrier (40%).
The Royal London says it is important for older workers to consider purchasing or continuing their life insurance to cover unforeseen circumstances; to make sure they are getting the best deal possible with their savings accounts; to keep contributing to their pension where possible (if not yet retired), especially if they also get a contribution from their employer, but only if they have an emergency savings fund in place first; to plan for retirement; and to seek help if they are struggling with debt, by talking to their lender or a debt advice charity such as StepChange or National Debtline who will provide free advice.