Around one in seven (14 per cent) retired people aged over 55 have returned to work due to their pension not being sufficient to fund retirement, research from Standard Life has found.

Almost two-thirds (64 per cent) of over-55s who have gone back to work said income issues were the cause, with a third (32 per cent) unretiring because living costs had increased more than they expected.

Furthermore, nearly a quarter (24 per cent) of retirees found that, due to the increase in the cost of ‘moderate’ living by 34 per cent according to the Pensions and Lifetime Savings Association (PLSA), their pension was not sufficient to live off.

The rise in living costs had more than one in 10 (12 per cent) considering delaying their retirement plans, whilst 3 per cent were taking on another job to boost income.

The research also found that men were more likely to have unretired than women, with 16 per cent of men aged over 55 returning to work compared to 12 per cent of women.

Standard Life managing director for workplace, Gail Izat, said: “Many have had to rethink major life decisions, including those around retirement – some have delayed their planned retirement dates, or have returned to work after having previously retired.

“The cost of retirement is set to remain high. It’s clear that a ‘moderate’ lifestyle is likely to be out of reach for many based on their current level of savings.

“Providers and employers have a big role to play in helping people to engage with their pension and build up a strong pension pot from as early an age as possible, giving them the best chance of securing the lifestyle they hope for in retirement.”

Despite this, 31 per cent of retirees want to return to work to earn more money to treat themselves more in retirement and 39 per cent have decided to unretire due to feeling bored at home.

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