Pensions - Articles - 1 in 5 return to work after reaching state pension age


Retired jobseekers want to keep mentally active as well as increasing their income in retirement. Around one in six are doing voluntary work while nearly one in 20 are earning more than before they retired

 More than one in five (21 per cent) pensioners have gone back to work since they reached the State Pension age, or are planning to do so in the future, according to new research1 from Prudential.
  
 The rise of the retired jobseeker, along with the growing trend for a period of pre-tirement as previously identified by Prudential2, shows how the modern retirement reality continues to shift further from the traditional norm of giving up work for good on a set date.
  
 The most common motivation for pensioners heading back into the jobs market is a desire to keep mentally active (61 per cent), although the need to boost retirement income 56 per cent) is also driving retirees back to work.
  
 Voluntary work is the choice of around one in six (16 per cent) retirees who are back at work or plan to return in the future – underlining the point that it is not always financial reasons that drive pensioners to seek employment. Even those who are earning are likely to take a pay cut – more than half (51 per cent) say their post retirement wages will be lower than their previous income in employment.
  
 Meanwhile, nearly one in 20 working past State Pension age are earning more than they did before, while one in 12 are setting up their own companies.
  
 Prudential has also analysed ONS data3 and found that the most likely sectors for those working past State Pension age to find employment in are teaching and education, secretarial jobs and agricultural jobs.
  
 According to the research from Prudential, women who have passed the State Pension age are more likely to have ruled out a return to work, with 51 per cent saying they’re definitely retired compared with 44 per cent of men.
  
 Stan Russell, retirement income expert at Prudential, said:
 “Although it’s striking to see how many retirees are choosing to return to work, it’s not optional for some people. While many say that working in older age is a good way of staying active, there are others who are forced to go back to work to make ends meet.
  
 “Of course, there are real financial benefits from going back to work, such as earning extra cash and deferring taking the State Pension or income from private savings. However, for people who are hoping to give up work completely when they retire, saving as much as possible as early as possible in their working life remains the best way to secure the most comfortable retirement.
  
 “The changes to pension rules that came into effect back in April have further increased the choices that the over-55s have to consider when preparing for retirement. Now more than ever, it is hard to overestimate the benefit of professional financial advice for most people planning for their retirement.” 

Back to Index


Similar News to this Story

Wish list for the occupational pensions industry in 2025
As one year closes and another begins, it's an opportune moment to set our sights on the future. The UK occupational pensions industry faces nume
PSIG announces outcome of Consultation
The Pensions Scams Industry Group (PSIG), which was established in 2014 to help protect pension scheme members from scams, today announced the feedbac
Transfer values fell to a 12 month low during November
XPS Group’s Transfer Value Index reached a 12-month low, dropping to £151,000 during November 2024 before then recovering to its previous month-end po

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.