Consumer: Retired pensioners go back into employment

Retirees go back into employment.
Retirees go back into employment.
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More than a fifth of retired pensioners have taken up another form of employment, or are planning to do so, since reaching pension age.

According to new research from Prudential, 21 per cent have gone back to work, either for financial reasons (56 per cent) or because they want to keep mentally active (61 per cent).

Out of those who have gone back to work, around one in six are doing voluntary work 51 per cent said they were getting paid less than they were in their previous employment.

One in 20 are earning more than before they retired while one in 12 have set up their own companies.

The research also found that those working in the teaching and education sector, secretarial jobs and agricultural jobs are the most likely to return to employment.

Women are also less likely to go back to work, with 51 per cent saying they were permanently retired compared to 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.”