16th July 2015
Some 21%, or more than one in five pensioners, have gone back to work since they reached the State Pension age, or are planning to do so in the future, claims new research.
The analysis from Prudential found that the most commonly cited motivation, at 61%, for pensioners heading back into the jobs market is a desire to keep mentally active, although the need to boost retirement income, as mentioned by 56% of respondents, is also a major driver.
But the desire is not always financially driven, as voluntary work is the choice of around 16% of retirees.
The insurer’s study found too that even those who are earning are likely to take a pay cut. In fact, more than half, at 51%, said their post retirement wages will be lower than their previous income in employment.
However one in 20 working past State Pension age are actually earning more than they did before, while one in 12 are setting up their own companies.
Prudential found that the most likely sectors for those working past State Pension age to find employment in are teaching and education, secretarial jobs and agricultural jobs.
According to the research women who have passed the State Pension age are more likely to have ruled out a return to work, with 51% admitting they are definitely retired, compared with 44% 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.”