Cost-of-living pressures have prompted an increasing number of retirees to return to work, industry research has found, with growing evidence that the traditional concept of retirement is 'dying out' .

Research from People's Partnership and State Street Global Advisers found that some of those who decided to retire early in recent years are now returning to the workplace, after realising their savings weren’t enough or simply because they were bored of retirement.

According to the study, these re-joiners tend to return to the jobs market either part time or on flexible hours in low-stress roles and prefer to work close to where they live.

However, the research found that although these older workers want the structure and a sense of value that work brings, their new jobs are often very different to their previous careers.

Commenting on the findings, People's Partnership director of policy, Phil Brown, said: “The fact that an increasing number of early retirees are returning to the workplace suggests that some have realised that their pension savings won’t stretch as far as they had hoped.

"It’s a reminder of how important retirement planning is and that so many savers need support when it comes to how they access their pension pot.

“The research also shows us how important the state pension is to so many retirees, some of whom had previously assumed that it wouldn’t provide them with enough income. In reality, the state pension makes up a significant proportion of retirement income for those with a private pension.”

State Street Global Advisers head of retirement strategy, Alistair Bryne, added: "This wave of research takes place in a very different economic environment, with a cost-of-living crisis created by high inflation and markedly higher interest rates forcing retirees to rethink their approach.

"The results reinforce our view that for many people, a guided retirement income product that provides flexible access to the pot in the early years of retirement, along with a stable, guaranteed-for-life income in the later years, will be a valuable approach.”

These findings could also be representative of a broader trend, as separate research from SmartSave has found that most UK adults believe the concept of retirement is dying out, with nearly half (42 per cent) of savers expecting to have to work past retirement age of 66.

Of those, 73 per cent believe that the traditional approach to retirement is becoming less work, while nearly two thirds (65 per cent) envisage doing some part-time work in ‘retirement’.

The research identified several factors contributing to people’s changing attitudes towards retirement, with just over a third (34 per cent) of those planning to retire at 67 or later stated that advances in technology, remote working, and the gig economy blur the line between working life and retirement.

More generally, 54 per cent of all survey respondents agreed with the statement that ‘the ability to “fully retire” is increasingly becoming a privilege that only the wealthy can afford’.

Commenting on the findings, SmartSave CEO and founder, Andy Mielczarek, said: “The cost-of-living crisis has undoubtedly affected people’s ability to save and prepare for retirement.

"But there’s an important and often-overlooked question we need to ask: do the traditional notions of retirement still hold up?

“The research highlights that for millions of UK employees, the way they think about retirement is evolving.

"For many, it is no longer black and white – part-time work in later life will play a big part in how they transition into retirement, and this is not always a financial necessity, but the survey shows that there are a lot of people who want to keep working.

“Given the rollercoaster that the UK economy and labour market have been on in recent years, it is vitally important we recognise this shift in attitudes.

"The narrative of people being forced to work past retirement age, rather than doing so by choice, is far too simplistic.

"Instead, there ought to be a greater focus on education, support and banking products that cater to changing perceptions towards retirement and long-term financial management.”  

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