Retirees issued urgent warning as one in six forced back into work amid savings crisis

Temie Laleye
Mon, 13 Apr 2026 07:10:56 +0000

Financial pressures are pushing a substantial number of retirees back into the workforce, with new research revealing that the reality of life after work is failing to meet expectations for many older Britons.

One in six retired people have either already gone back to employment or are actively thinking about doing so, according to a new study.

The Standard Life study shows an even split, with eight per cent having already returned to jobs and another eight per cent contemplating a return.

Social factors play a role for some, including feelings of isolation from others while not working.

However, money worries are proving a significant driver behind what researchers are calling the "unretirement" trend.

The Ipsos survey questioned 6,000 UK residents in June 2025, including over 1,200 retired individuals aged 55 and above.

Nearly a third of those surveyed reported experiencing a lower standard of living compared to their working years, while just over a fifth said their circumstances had actually improved since stopping work.

The research highlighted widespread feelings of being ill-prepared for this life stage.

One in five admitted they had failed to anticipate the financial demands retirement would bring.

A similar proportion expressed regret at not having planned more carefully, while 19 per cent acknowledged they had not fully grasped how many years their retirement might span.

Standard Life noted that inflation has significantly eroded retirees' purchasing power.

Those who stopped working before reaching state pension age, or who lack a defined benefit pension with inflation protection built in, face particular challenges in sustaining their income, often requiring more careful planning and accepting greater investment risk.

Mike Ambery, retirement savings director at Standard Life, said: "Retirement is no longer a single moment where work simply stops.

"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 parttime 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.

"For some, returning to work is about staying active and connected. But for others, it reflects the reality that retirement isn't always turning out as expected, particularly as rising costs put pressure on incomes.

"In a world that feels increasingly uncertain and unpredictable, it's more important than ever that people feel supported to engage with their financial futures and understand what their retirement could look like."

Mr Ambery emphasised that straightforward measures can have a meaningful impact, whether taken before or during retirement.

He advised regularly monitoring pension savings and considering how they will be converted into income, as well as assessing whether current withdrawal rates are sustainable for the years ahead.

"It's also important to check when you're due to retire, as your planned retirement date and your state pension age don't always align, and to make sure you've planned for any gap between the two," he said.

He encouraged people to think carefully about their desired lifestyle, consider phased or flexible working arrangements, and seek professional guidance at an early stage.

"Planning ahead means people are better placed to manage their money with confidence and achieve greater financial security over the long term," Mr Ambery added.