Cost of living crunch forces millions to put retirement hopes on hold with many expecting to have to keep working indefinitely
Millions of older workers have had their retirement dreams dashed by soaring inflation, a report suggests.
More than 2.5 million over-55s plan to delay retirement as a result of the cost of living crisis, according to pension group Legal & General.
Of those, up to 1.7 million expect to have to keep working indefinitely.
More than 2.5 million over-55s plan to delay retirement as a result of the cost of living crisis, according to pension group Legal & General
Nearly two-thirds of people told L&G their main reason for the delay is that they would not be able to afford the loss of income while living costs are so high.
On average, over-55s expect to stay in work for an extra three years. Those who do retire risk running out of money sooner, as their pension income will be eroded by rising prices, unless they have inflation protection.
This is because they will have to take out 10 per cent more income than last year to meet the same standard of living.
The majority of private-sector workers do not have this guaranteed link in place, leaving them vulnerable as consumer prices rose 11.1 per cent in the year to October.
Among those whose plans have been derailed is business analyst Mike Jones, 74, from South Wales.
He had planned to retire from his full-time career next June, but now fears he could be working well into his late 70s.
‘Before this crisis, I had felt quite confident I could live out the rest of my days with what I had,’ he says. ‘Now, I’m hesitant about retiring because my costs have been going up. Nor do I see any light at the end of the tunnel, so it is a big concern.’
Mike says he never expected still to be working at 74, although he was happy to keep doing his job throughout the pandemic because it kept him busy.
‘These days, though, I do feel that I want to retire. I hope I can get myself in a position where I can afford to next year.’
Lorna Shah, of Legal & General, says: ‘While many people choose to retire later because they enjoy their work, there are millions of people who are making this decision based on necessity, rather than a personal choice.’
Meanwhile, a growing number of pensioners are being pushed back into work to make ends meet.
More than a third of retired women over the age of 65 and 18 per cent of men have returned to work, research by Standard Life has found.