Retirees returning to work amid rising living costs, study indicates

Nearly one in 10 retirees have returned to the workforce or are considering doing so as living costs continue to rise across the UK.

New research by Paragon Bank found that 4% of retirees have already started work again in some form, while a further 5% are considering doing so.

The findings, based on a study of 1,200 over-55s, indicated that the most common step that retirees are taking to increase their income is selling shares or other investments (16%), followed by taking money from their pension (12%). Meanwhile, 4% said they were considering releasing equity out of their property.

Paragon’s study also found that 42% of over-55s felt worse off than this time last year, with only 6% feeling better off. Over half (53%) said they were paying more for food in their weekly shop, with 40% paying more for heating and electricity.

More than eight in 10 (81%) respondents said their pension was their main source of income, followed by investments at 7%. Furthermore, 4% said full-time work provided their main income stream, with 4% also stating part-time work.

Commenting on the bank’s findings, Paragon savings director, Derek Sprawling, said: “Retirees are exposed to cost of living increases as it is challenging for them to increase their income. This is driving some people back into the workforce as they look for additional cash to supplement their pensions or investment income. At the same time, our research also shows those retirees who can are supporting family members feeling the squeeze. 

“With challenges for themselves, or to support their family, it’s more important than ever to maximise the returns from savings and for savers to be proactive. Rates offered by smaller and mid-tier banks have been increasing in recent months, whilst many rates offered by the high street providers have remained stubbornly low. Savers with fixed levels of income need to act to ensure they are maximising their money.”

    Share Story:

Recent Stories


Helping landlords make their cash work harder
MoneyAge Editor, Adam Cadle, talks to Family Building Society BDMs, Arif Kara and Nathan Waller, about the resilient BTL market, the wide variety of landlords that Family Building Society caters for, and how niche products like an Offset mortgage can help improve cashflow.

An outlook on the BTL market
MoneyAge Editor, Adam Cadle, talks to Landbay senior regional account manager, Alex Witham, about current market sentiment within the BTL space and Landbay’s success in this area

Empowering advisers: A decade of education in Later Life Lending with Air Academy
Michael Griffiths is joined by chairman of Air Club and former founder and CEO of Air, Stuart Wilson, and head of the Air Academy, Daniel Holden, to look back on a decade of business focused learning at the Air Academy.


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.