Thousands of pensioners are planning to come out of retirement because of the cost of living crisis, according to a new survey.
Its survey of 2,000 UK adults found that, for 12% of those in retirement, rising inflation has “upended” their retirement plans. Moreover, 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.
The UK has a population of approximately 12.2 million retirees. My Pension Expert’s research found that 6% of retirees (equivalent to 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.”