2.5 million pre-retirees to delay retirement due to cost-of-living crisis

Around 2.5 million pre-retirees believe they will have to delay their retirement as a result of the cost-of-living crisis, according to research from Legal & General Retail.

The research detailed that, among those planning to delay their retirement, 1.7 million expected to have to keep working indefinitely in either part-time (19 per cent) or full-time (9 per cent) roles.

It was also revealed that pre-retirees who planned to delay their retirement said they will need to push it back by almost three years on average, with nearly two-thirds (64 per cent) unable to afford the loss of income whilst costs are so high.

Additionally, the research found that over one in seven pre-retirees (16 per cent) were also presently looking for additional work in order to boost their income, and 10 per cent reported being concerned about the stability of their job in light of the current economic conditions.

However, it was also discovered that, while a need for income remained a priority for many who plan to delay, a desire to stay in the workplace is also driving many people.

Other reasons for pushing back retirement discovered in the research included people simply enjoying their jobs (26 per cent), not feeling 'old' enough to retire yet (25 per cent), and worrying they will be bored if they retire (20 per cent).

Legal & General Retail managing director of retail retirement, Lorna Shah, commented: “Retirement can be tricky to navigate even without the backdrop of rising living costs, so it’s understandable that those approaching retirement aren’t sure what they want to do next.

“While many choose to retire later because they enjoy their work, there are millions of people who’re making this decision based on necessity, rather than personal choice.

“But retirement isn’t a once and done decision. Before concluding their retirement needs to be delayed or forgotten indefinitely.

“I’d urge people to think about the role different products and assets can play and make use of the free, impartial support available offered by the likes of MoneyHelper and Citizens Advice Bureau. It’s crucial to have a strong understanding of the options available before making any long-term decisions.”

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