More than 700,000 retirees are preparing to return to work to cope with the cost of living crisis, according to a new survey.

The survey backs up recent studies suggesting that many retirees plan to ‘unretire’ and go back to the workplace.

This may include some who retired early due to the pandemic but are finding their retirement income failing to keep up with living costs.

The survey of 2,000 consumers by retirement income specialist My Pension Expert found that:

• 12% say soaring inflation has “upended” their retirement plans
• 34% are worried they will no longer be able to sustain their desired lifestyle in retirement
• 6% of retirees (733,000 people) say they are likely to return to the workforce in the coming months 

More than a third (34%) of UK retirees fear they will no longer be able to sustain their desired lifestyle in retirement as the cost-of-living has increased so sharply. CPI inflation is currently 9.9% with fears it may rise further this year and into next year.

My Pension Expert says that of the UK’s 12.2m retirees 6% (around 733,000 people) say they are likely to return to the workforce in the coming months to top up their pension.

Less than half (46%) of respondents said they are confident in their current financial strategy. 

The study also showed that despite concerns over their finances and potentially having to ‘unretire’, just 5% of retirees in the UK have sought independent financial advice in 2022. 

Andrew Megson, executive chairman of My Pension Expert, said: “As the cost-of-living crisis bites harder, we’re seeing a worrying spike in ‘unretirement’. It’s a hugely important issue – after working and saving for decades, having to re-enter the workforce will be a bitter blow to many retirees. 

“The reality is that many people’s pension pots are losing value in real-terms amid sky-high inflation. And as such, their hard-earned retirement funds won’t stretch as far or sustain the same lifestyle. That’s why it’s so important those approaching or in retirement take the time to assess their financial strategies and, as necessary, consult experts.

“Despite all the challenges they are facing, a mere 5% of retirees have spoken to an independent financial advisor this year.”

He encouraged consumers to get financial advice before making any major changes.

• The research was carried out between 29 July and 2 August 2022 among 2,000 UK adults via an online survey by independent market research agency Opinium.