A curious trend labelled as the ‘great un-retirement’ is surfacing, as per insights from Age UK.
This surprising shift – following the ‘Great Retirement’ – seems to be prompted by escalating living costs, forcing many to reconsider their retirement plans.
The Reality of Broken Retirement Dreams
Age UK reports an influx of older people whose dreams of a tranquil retirement have been shattered due to relentless inflation.
It appears that rising costs of living are compelling a demographic traditionally associated with rest and relaxation to reassess their life plans.
Declining Early Retirement Rates
Data from the Office for National Statistics (ONS) adds weight to this trend.
Figures for the period between February and April 2023 reveal a drop in the number of retired individuals below 65 years, falling from 1.18 million the previous year to 1.075 million.
Age UK’s Charity Director, Caroline Abrahams, paints a concerning picture. She underlines that the cost-of-living crisis is undermining retirement plans, especially for those with limited savings.
An increasing number are forced to defer retirement, or even return to work, after they realise their funds are insufficient to cover their expenses.
The Economic Impact
The unfolding crisis impacts more than just individual lives; it holds wider implications for the economy.
Abrahams emphasises the need for greater governmental support for those unable to work until their state pension eligibility age.
By doing so, she argues, it could reduce the level of economic inactivity – a key goal for many economies.
Survey Insights
A survey conducted by Opinium for Age UK corroborates these findings.
The survey found that among 60 to 65-year-olds, 9% have recently had to modify their work habits, for example, by returning to work or delaying retirement, to enhance their income.
Pension Perspectives
John Adams, a senior policy analyst at the Pensions Policy Institute (PPI), underscores the serious ramifications of prematurely dipping into pension savings.
Doing so not only reduces future retirement income but also foregoes potential investment returns.
Meanwhile, Phil Brown, the policy director at People’s Pension, reveals that almost half of the non-retired population anticipate working beyond the state pension age.
A significant 7% even fear they may never retire.
Governmental Actions
In response to the crisis, a Department for Work and Pensions spokesperson stated the government’s commitment to providing financial support and free advice to the affected individuals.
Various programmes have been launched to aid individuals aged 50 and above who can still work.
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