Nearly 1 in 10 retirees returning to work – here’s why

New research highlights why some retirees are ‘unretiring’, while others explore financial options like equity release to maintain lifestyle

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Another study has shed light on the growing number of retirees choosing to return to work – whether for financial reasons or personal fulfilment.

Research from Standard Life found that nearly one-in-ten (9%) retirees over 55 have either gone back to work or are actively looking for employment. The reasons behind this shift vary, but the cost-of-living crisis is a major factor, with 34% citing rising expenses and 27% saying their pension isn’t enough to support them.

It’s not just about covering the essentials, however. Over four-in-ten (43%) of those returning to work said they wanted extra income to enjoy more treats and luxuries in retirement. Meanwhile, a significant number are heading back to the workplace for non-financial reasons: 38% because they felt bored, and 20% due to loneliness.

Mike Ambery, retirement savings director at Standard Life, commented: “Recent retirees couldn’t have foreseen the cost-of-living issues that have squeezed their retirement incomes, and many are now being forced to rethink their plans and return to work to supplement their income.”

68% of retirees felt immediate happiness boost after leaving work

While some retirees clearly feel the pull of employment, separate research suggests that retirement itself is overwhelmingly positive. 

SunLife’s 2024 Life Well Spent report found that 66% of retirees felt happier in the long term, and 68% felt an immediate happiness boost after leaving work. 

Similar to the findings by Standard Life, around one-in-ten felt less happy since retiring, with 18% admitting they may have retired too early. Nearly half (45%) of those yet to retire said they would still choose to work as long as possible, even if money was no issue.

Of course, not everyone returns to work by choice. Catherine Foot, director of Phoenix Insights, added: “While some have enough finances to retire early out of choice, many fall out of work in their 50s and 60s due to reasons such as caring responsibilities or ill health and plan to return as soon as they are able.”

However, she also warned: “Being out of work before state pension age is a major driver of pre-retirement poverty, so it’s critical for the government and employers to better support this group to remain in employment. Providing access to flexible work is one of the most important factors to enabling this.”

Could equity release help retirees achieve the lifestyle they want?

For those weighing up their retirement options, equity release could offer a way to bridge the financial gap without having to clock back into work. 

By unlocking some of your property wealth, you could supplement your income, cover rising living costs, or fund a phased retirement so you can ease more gently into your new lifestyle. While equity release isn’t the right choice for everyone, it’s an option worth considering for some.

Do speak to a specialist if you are thinking about tapping into some of your home’s value. They can explain all the benefits and drawbacks, including how a plan will reduce the amount of inheritance you leave. They can also search for the best plan – and best equity release rate – to suit your needs. 

Speak to our of our selected equity release advisers by calling 0808 178 3055 or request a call back at a time convenient to you.

Source

Nearly one-in-ten (9%) retirees over 55 have either gone back to work or are actively looking for employment: One in seven retirees returning to work. FTAdviser. Accessed 25 February 2025.

About Clare Yates. With over a decade’s experience writing about later life financial planning, Clare offers a wealth of knowledge about equity release, pension annuities, wills, LPAs and more. When she isn’t writing, Clare likes to spend her time baking and going on walks with her husband, two children and their rescue dog. Follow Clare on LinkedIn