Cost concerns delay retirement plans for over-55s

Analysis by Legal & General suggests that more than 2.5 million over-55s plan to delay retirement as a result of the cost-of-living crisis, with up to 1.7 million of these saying they expect to have to keep working indefinitely.

On average, over-55s expect to stay in work for an extra three years. Nearly two-thirds of those polled said 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.

Other reasons include people simply enjoying their jobs (26%), and not feeling ‘old enough’ to retire yet (25%). The findings suggest that 46% of workers aged 55+ have had their plans impacted by external factors such as the pandemic, Brexit and rising living costs.

Over one in seven pre-retirees (16%) are also presently looking for additional work in order to boost their income, and one in 10 (10%) are concerned about the stability of their job in light of the current economic conditions.

However, while a need for income remains a priority for many who plan to delay, a desire to stay in the workplace is also driving many people. Other reasons for pushing back retirement include people simply enjoying their jobs (26%). A further one in four (25%) say they don’t feel ‘old’ enough to retire yet, while a fifth (20%) worry they will be bored if they retire.

Lorna Shah, Managing Director of Retail Retirement, Legal & General Retail said” Retirement can be tricky to navigate even without the backdrop of rising living costs, so it is understandable that those approaching retirement aren’t sure what they want to do next. While many choose to retire later because they enjoy their work, there are millions of people who are making this decision based on necessity, rather than personal choice.”

“But retirement isn’t a once and done decision. Before concluding their retirement needs to be delayed or forgotten indefinitely, I’d urge people to think about the role different products and assets can play and make use of the free, impartial support available offered by the likes of MoneyHelper and Citizens Advice Bureau. It’s crucial to have a strong understanding of the options available before making any long-term decisions.”