A significant proportion of older people are deciding to “unretire” as the financial reality of retirement falls short of expectations, according to research.
One in six (16%) retirees surveyed for Standard Life said they have already returned to employment (8%) or are considering doing so (8%).
While some have returned or are considering returning to work for social reasons, such as feeling disconnected from other people when not working, financial pressures are also triggers for finding a job again, the survey found.
Three in 10 (30%) retirees said their standard of living is worse than before they retired, compared with just over a fifth (22%) who have seen an improvement.
Many also feel unprepared for retirement. A fifth (20%) said they did not realise how much money they would need in retirement, with 21% wishing they had planned their retirement more thoroughly and 19% saying they had not appreciated how long retirement would last.
Standard Life said inflation has also had a significant impact on retirees’ spending power.
For people who retire before state pension age, or who do not have a salary-based defined benefit (DB) pension with built-in inflation protection, maintaining income in later life can require more planning and, in many cases, greater investment risk, it said.
Mike Ambery, retirement savings director at Standard Life, said: “Retirement is no longer a single moment where work simply stops.
“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.
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“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.
“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 survey of 6,000 people across the UK was carried out in June 2025 by Ipsos for Standard Life and included more than 1,200 over-55s who had retired.
