Research from Legal & General Retail has found that 2.5 million pre-retirees will have to delay their retirement as a result of the cost-of-living crisis.
Among those planning to delay, 1.7 million expect to have to keep working indefinitely in either part-time (19%) or full-time (9%) roles.
Pre-retirees who plan to delay their retirement say they will need to push it back by almost three years on average, with nearly two thirds (64%) unable to afford the loss of income whilst costs are so high.
The cost-of-living crisis is another in a series of setbacks that have seen pre-retirees reconsider their retirement plans. The findings suggest that 46% of workers aged 55+ have had their plans impacted by external factors such as the pandemic, Brexit and rising living costs.
Over one in seven pre-retirees (16%) are also presently looking for additional work in order to boost their income, and one in 10 (10%) are concerned about the stability of their job in light of the current economic conditions.
However, while a need for income remains a priority for many who plan to delay, a desire to stay in the workplace is also driving many people. Other reasons for pushing back retirement include people simply enjoying their jobs (26%). A further one in four (25%) say they don’t feel ‘old’ enough to retire yet, while a fifth (20%) worry they will be bored if they retire.
Lorna Shah, MD of Retail Retirement, Legal & General Retail, said: “Retirement can be tricky to navigate even without the backdrop of rising living costs, so it is understandable that those approaching retirement aren’t sure what they want to do next. While many choose to retire later because they enjoy their work, there are millions of people who are making this decision based on necessity, rather than personal choice.
“But retirement isn’t a once and done decision. Before concluding their retirement needs to be delayed or forgotten indefinitely, I’d urge people to think about the role different products and assets can play and make use of the free, impartial support available offered by the likes of MoneyHelper and Citizens Advice Bureau. It’s crucial to have a strong understanding of the options available before making any long-term decisions.”
