Majority of over 50s plan on returning to work amid cost-of-living crisis – Handelsbanken Wealth & Asset Management

Just 38% of adults in their early-mid 50s are confident that their retirement provisions will meet their needs

The overwhelming majority of workers aged over 50 in the UK will not have the luxury of retiring early, new analysis* from Handelsbanken Wealth & Asset Management shows, with 86% of those aged 50-54 and 65% of those aged 55-59 considering a return to work.

The research, which investigated employment trends for workers aged 50 and over since the start of the coronavirus pandemic, found that just 38% of adults aged between 50-54 are confident that their retirement provisions will meet their needs, with this figure only rising to 55% amongst those aged 60-65 years.

Those aged 50-54 were found to be generally less financially resilient, with just half (49%) debt-free excluding a mortgage, compared with those aged 60-65 (62%). Two fifths of workers aged 50-54 were found to have credit card debt (39%) compared to a quarter (24%) of those aged 60-65.

The research suggests that the number of fifty-somethings looking to return to work has risen throughout the year, up 14% in just six months. Almost three quarters (72%) said they would consider a return to work in August 2022, compared with 58% in February 2022.

Christine Ross, Head of Private Office (North) and Client Director at Handelsbanken Wealth & Asset Management said: “As the cost-of-living crisis continues, many people in their fifties will notice that they don’t have enough in their pension pot currently to live a comfortable retirement. It is now more important than ever to take the necessary steps to ensure that you are in the most financially robust position possible.

“For adults in this age bracket, it’s worth considering maximising your pension contributions with any unforeseen pay rises or bonuses and checking to see if you have any unused annual allowances that will enable you to make larger one-off pension contributions if you have additional funds, for example, from an inheritance. A wealth adviser can help you to understand your tax position in this regard.

“Some homeowners might start thinking about selling their property and downsizing to boost their retirement income. You could also consider an equity release scheme, if needed. Although this option involves some risk and will reduce the inheritance you leave behind, it can be a good supplement for your pension.”