Over-50s considering returning to work due to concerns about retirement funds
The overwhelming majority of over-50s are not financially set for retirement due to the pandemic and cost of living crisis.
Just under two-fifths of those aged 50-54 are happy their retirement funds are sufficient, rising to 55 per cent for those 60-65.
The worrying trend, highlighted in research from Handelsbanken Wealth & Asset Management, shows a staggering 86 per cent of those aged between 50-54 are thinking of going back to work, in a bid to get more cash.
This comes amid the cost of living crisis, rising inflation and renewed pressure on people’s mortgages and borrowing costs due to high interest rates.
While those aged 50-54 are likely to consider returning to work, people approaching sixty are also thinking it, to the tune of 65 per cent.
Those in their fifties looking at going back into the office has gone up 14 per cent in just six months, while employees between 50-54 seen as less financially secure. Just 49 per cent were debt-free, excluding their mortgage.
With the prospect of not being able to retire early Christine Ross of Handelsbanken Wealth & Asset Management said: “As the cost-of-living crisis continues, many people in their fifties will notice that they don’t have enough in their pension pot currently to live a comfortable retirement.”
“It is now more important than ever to take the necessary steps to ensure that you are in the most financially robust position possible.”
He said for those who are able to return to work, “it’s worth considering maximising your pension contributions with any unforeseen pay rises or bonuses and checking to see if you have any unused annual allowances that will enable you to make larger one-off pension contributions if you have additional funds, for example, from an inheritance.”
The data was sourced from ONS figures for workers aged over 50 years leaving employment dataset.