While some countries across the world are instituting controversial policies regarding older retirement ages, some people in the UK are opting to put off retirement voluntarily. As a result of record-breaking inflation rates and the cost of living crisis, workers are planning to stay in their jobs longer than they previously had.
This does not constitute advice and advice should be sought in all instances before acting on it.
But it’s not just people thinking about working past the State Pension age, some who have already retired are returning to work amidst increasing financial pressure.
Facing economic pressure
Millions affected by financial insecurity in recent years have pledged to stay working longer than previously intended. Many plan to work well past the State Pension age due to fears that their pension funds won’t be able to sustain them through the entirety of their retirement.
According to a survey conducted by Opinium in October 2022, nearly four in ten over-55s are planning to work past the State Pension age and have cited increased cost of living as the reason why. Twenty-three percent are unsure how long their pension pots will sustain them and a worrying 18% do not have any plans for how to get by once they stop working. It’s no wonder there are so many people that are planning on working for longer.
The trade off
About half (46%) of millions of older people are expecting to work later in life. The trade off to having more economic stability however, is that there will be less time to enjoy the fruits of their labour. There is also the question of health — putting off retirement means there is a higher chance that their health and standing with their employer will suffer as a result of working longer and that when they do reach retirement age, their life will be filled with health concerns and visits to specialists rather than relaxation and fun.
It will also extend the constant battle between finding time for your friends and family while still keeping work commitments and meeting deadlines. An older working population is good news for the labour shortages the country and the NHS are experiencing, but it presents a concerning picture that delayed retirement is necessary at all.
What will your retirement look like?
We all deserve to reach retirement at an age where we can still fully enjoy all the pleasures life has to offer. If you are worried you may need to work longer because of the current economic climate, get in touch with the experts at Dental & Medical Financial Services. We can help you navigate the current cost of living crisis and help prepare you for the future at the same time — contact us today.