More than one in five (21 per cent) pensioners have gone back to work since they reached the state pension age, or are planning to do so, with some doing this to make ends meet, according to Prudential.
An online poll of 581 adults at the start of June found the most common motivation for pensioners heading back into the jobs market is a desire to keep mentally active (61 per cent), although the need to boost retirement income (56 per cent) is also driving retirees back to work.
Voluntary work is the choice of 16 per cent of retirees who are back at work or plan to return in the future. Even those who are working to earn money are likely to take a pay cut, with the data showing that 51 per cent said their post retirement wages will be less than their previous income in employment.
Meanwhile, nearly one in 20 working past state pension age, which is currently 65 for men and less for women, are earning more than they did before, while one in 12 are setting up their own companies.
Prudential also analysed Office for National Statisics’ data and found the most likely sectors for those working past state pension age are teaching and education, secretarial jobs and agriculture.
Women who have passed the state pension age are more likely to have ruled out a return to work, with 51 per cent saying they are definitely retired, compared with 44 per cent of men.
Stan Russell, senior business development manager at Prudential, said that 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.
“The changes to pension rules that came into effect back in April have further increased the choices that the over-55s have to consider when preparing for retirement. Now more than ever, it is hard to overestimate the benefit of professional financial advice for most people planning for their retirement.”
emma.hughes@ft.com