According to a study, one in three people (30%) will change pension plans due to the cost of living crisis.
The to researchby Royal London, also found that a third (33%) of those planning to retire in the next 5 years are changing their retirement plans.
The survey of more than 2,000 general consumers aged 55 and over in June this year and 1,000 who planned to retire in the next five years found that just under two-thirds (58% ) would consider working in retirement.
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Mandy Garner, spokesperson for Working Wise, said many older workers were “stuck between a rock and a hard place”, unable to retire, but unable to pay their bills in their current roles.
“If we want to involve older workers and encourage them to stay or return to the workplace, we need to understand their needs; flexible working is crucial, largely due to health issues and family responsibilities,” she said, adding that older workers should be appreciated and valued by their employers, “otherwise they will jump ship.”
Just under half (45%) said they would consider re-entering the workforce if they were having trouble paying their bills, and just under two-fifths (38%) said they feared to have enough money to “get by”.
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Caroline Abrahams, charity director at Age UK, said in the current economic climate it’s ‘no wonder’ many are reconsidering retirement, but she said it could be beneficial for employers – but only if they are ready to welcome older workers.
“Some seniors with valuable skills that last a lifetime might relish the prospect of staying in employment,” said Abrahams, who added that she hopes “employers recognize the fantastic and often underutilized skill base of enthusiastic older workers”.
Dr. Emily Andrews, deputy director of labor at the Center for Aging Better, agreed that the current circumstances following the fall statement will have encouraged the elderly to reconsider their plans. “However, many older people may find it difficult to continue working longer or returning to the workplace, regardless of the severity of financial need, as ageism in the labor market remains prevalent,” a- she declared.
Andrews said while it was “encouraging” that employers are offering recruitment drives for older workers, they need to do more to attract them. support if older workers are going to be able to continue working longer so that they are better placed financially for retirement,” she added.
Dr Clare Mulligan-Foster, a licensed psychologist and expert on later career transitions, said HR teams need to think about developing career planning skills for older workers. “The traditional career for this demographic isn’t just about continuing until retirement, it can also be about thinking about opportunities.”
Some would like to work longer, in terms of years, if they had more balance in their careers. “Organizations need to challenge their own biases and perceptions of what careers mean, especially for older workers…there has been a shift over the past few years in terms of returning, mainly from people on career breaks and parents,” she said.
People are also living longer, Mulligan-Foster said, and the pension they decided on earlier in their careers might not be enough for their current needs. “Now the cost of living crisis is forcing people to reconsider that, and the concept of traditional retirement is really being challenged.”
She added that people may reconsider their plans for financial reasons, but may also be thinking about having a better work-life balance, exploring how they could have more meaning, and seeking more autonomy.