It’s no secret that basic living costs in the UK have shot up in recent years. Between energy bills rising, the cost of groceries soaring and everything else costing more in general, it’s not surprising that people who are nearing retirement age, worry that their pension won’t cover the bills.
As a result of this, people nearing retirement age are forced to consider continuing to work—either out of necessity or as a means of maintaining their standard of living.
A recent survey conducted by Chums found that 57.87% of individuals currently not retired plan to work past the traditional retirement age or are considering it, shedding light on a growing trend that speaks to both economic and social shifts.
The Shifting Landscape of Retirement in the UK
In previous decades, retiring in the UK often meant transitioning into a stage of life where work became optional.
Most people in their 60s and beyond had built up enough savings, investments, and pension funds to comfortably support themselves without returning to employment. Even if they hadn’t, the state pension would keep them afloat.
Back then, pensions in general—whether private or state-funded—were sufficient to cover monthly expenses, and inflation levels remained low enough that retirees didn’t see a sharp erosion of their savings. This meant pensioners were able to enjoy their retirement as a time of leisure to enjoy hobbies and spend time with grandkids.
In recent years, the financial landscape has changed dramatically. Inflation rates are at a multi-decade high, and everyday essentials such as food, utilities, and fuel have seen price increases that make it harder for those on fixed incomes to manage.
Energy bills, in particular, have surged, with some retirees now paying double or triple what they were just a few years ago. The government have stopped the financial help for all pensioners that contributes towards the heating. It’s not means tested, but experts are suggesting the threshold to qualify for the help should be adjusted to include more people.
What Does this Mean for You?
How the current economic situation will affect your retirement really depends on how old you are now. If you’re approaching retirement age, you might already be fully set up to stop work for good. If you’ve got a few decades to go, it might be worth mentally preparing for a much later retirement age than your predecessors.
The retirement age is already raising incrementally based on when you were born (I think mine was set to be around 67 last time I checked). What might happen is that even when people reach retirement age, they need to continue to work for a few more years to gain financial stability. So even though the official retirement age might sit around late-60s, it might not be commonplace to retire until you’re well into your 70s.
Experts suggest putting money away for retirement from when you start working, but that’s easier said than done. It’s hard to save for the future when it’s difficult to afford the present!