Uncertainty and fear over the state of the economy are driving over 50s back to work or pushing those still working to abandon plans to leave any time soon in a phenomenon dubbed the “great unretirement”. Between skyrocketing inflation, volatile financial markets and the cost of living crisis, it’s no wonder many retired people are returning to work in droves
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According to data from the ONS, there are now more people over 50 in work or looking for work (referred to as economic activity) than before the coronavirus pandemic broke out.
More than half of the reported 116,000 people over 50 working or looking for work are men over 65. Within this age and gender group, economic activity increased 6.5% from last year, while for women in the same age group, it increased 6.8%.
Furthermore, the majority are actually returning to work after retirement, rather than opting to stay in work longer than originally anticipated.
Nobody anticipated an event like COVID so many were unprepared for the incredible strain on finances and the hit to their retirement savings that they took because of the pandemic. With inflation not far off from hitting double digits, the truth of the matter is that one’s money just isn’t worth as much as it used to be and over 50s, especially those on fixed incomes, are really feeling the impact.
And despite the well-known advice regarding the volatility of markets — to keep calm and carry on — fear and uncertainty about the future of their current retirement funds abound. On top of that, because the triple lock increase was suspended last year, pensions did not rise in line with inflation. Plus, with energy prices rising as the winter months approach, many people over 50 are quite rightly worried about how they’re going to afford heating. No wonder there’s cause for concern.
Times like these are exactly why planning for the future and anything that may come is so important. Take the time to review your retirement plan now, get in touch with the experts of Dental & Medical Financial Services today to discuss the path that’s right for you.