Many older people are being compelled to “unretire” as the financial realities of their post-work lives fall significantly short of expectations, new research has revealed.
A survey conducted for Standard Life found that one in six (16 per cent) retirees have either already re-entered employment (8 per cent) or are considering doing so (8 per cent).
While social reasons, such as feeling disconnected, play a part, financial pressures are also a trigger for many seeking work again. Three in 10 (30 per cent) retirees report a worse standard of living than before they retired, compared to 22 per cent who have seen an improvement.
A fifth (20 per cent) admitted underestimating the money needed for retirement, with 21 per cent wishing for better planning and 19 per cent not appreciating its potential duration.
Standard Life noted that inflation has also significantly impacted retirees’ spending power. Those retiring before state pension age or without inflation-protected defined benefit (DB) pensions face greater planning and investment risk.
Mike Ambery, retirement savings director at Standard Life, commented on this evolving trend.
“Retirement is no longer a single moment where work simply stops,” he said. “For many people it’s becoming a more flexible journey, shaped around the life they want to live, and more flexible approaches to work – including part‑time roles and phased retirement – are making it easier for people to stay in the workforce for longer and shape work around their changing needs later in life.
“For some, returning to work is about staying active and connected. But for others, it reflects the reality that retirement isn’t always turning out as expected, particularly as rising costs put pressure on incomes.”
Mr Ambery further stressed the critical importance of proactive financial planning for future security.
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“In a world that feels increasingly uncertain and unpredictable, it’s more important than ever that people feel supported to engage with their financial futures and understand what their retirement could look like.
“Simple steps can make a real difference, whether that’s before or during retirement – from regularly checking in on your pension savings and thinking about how you’ll use them to generate an income, to reviewing how much you’re taking and whether it’s likely to last for the years ahead.
“It’s also important to check when you’re due to retire, as your planned retirement date and your state pension age don’t always align, and to make sure you’ve planned for any gap between the two.
“Taking time to consider the kind of lifestyle you want, exploring phased or flexible retirement options, and seeking guidance early can help people make more informed decisions.
“Planning ahead means people are better placed to manage their money with confidence and achieve greater financial security over the long term.”
The comprehensive findings stem from a survey of 6,000 UK adults, conducted in June 2025 by Ipsos for Standard Life, which specifically included over 1,200 individuals aged 55 and above who had already retired.
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