Many older people are being compelled to “unretire” as the financial realities of their post-work lives fall significantly short of expectations, new research has revealed.

A survey conducted for Standard Life found that one in six (16 per cent) retirees have either already re-entered employment (8 per cent) or are considering doing so (8 per cent).

While social reasons, such as feeling disconnected, play a part, financial pressures are also a trigger for many seeking work again. Three in 10 (30 per cent) retirees report a worse standard of living than before they retired, compared to 22 per cent who have seen an improvement.

A fifth (20 per cent) admitted underestimating the money needed for retirement, with 21 per cent wishing for better planning and 19 per cent not appreciating its potential duration.

Standard Life noted that inflation has also significantly impacted retirees’ spending power. Those retiring before state pension age or without inflation-protected defined benefit (DB) pensions face greater planning and investment risk.

Mike Ambery, retirement savings director at Standard Life, commented on this evolving trend.

“Retirement is no longer a single moment where work simply stops,” he said. “For many people it’s becoming a more flexible journey, shaped around the life they want to live, and more flexible approaches to work – including part‑time roles and phased retirement – are making it easier for people to stay in the workforce for longer and shape work around their changing needs later in life.

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