sm128 - Flipbook - Page 4
Later Life Planning
‘Unretiring’ is reshaping
our understanding of later life
Has the financial reality of retirement fallen short of expectations?
Amid rising living costs and market uncertainty, ‘unretiring’ is a growing
trend. Research shows that one in six retirees (16%) have either returned to
work (8%) or are strongly considering doing so (8%)[1]. While some return for
personal fulfilment, 24% cite loneliness or social disconnection as key reasons.
Time to review your
retirement strategy?
If you’d like to discuss your retirement plans
or need professional guidance, contact us for
F
inancial pressures remain a primary
challenges remain. While 78% of people feel
driver: 30% of retirees report a lower
confident about working at 60, this figure falls
standard of living than before retirement,
to 49% at 70. Barriers include declining health
while only 22% say it has improved. Many
(39%), retraining concerns (26%) and age
feel underprepared, with 20% underestimating how
discrimination (24%).
much money they would need, 21% wishing they
Uncertainty about retirement lifestyles persists.
had planned better and 19% failing to anticipate the
More than a third (38%) expect their retirement to be
length of their retirement.
worse than their current standard of living, with the
figure rising to 49% among Generation X and 43%
Impact of inflation on spending power
among women. As a result, retirement is becoming
Inflation has significantly eroded retirees’ spending
more flexible, with many adopting part-time roles or
power. For example, £100 in 2020 is now worth
phased retirement strategies to balance work and
only £78.25 in real terms. Those without a defined-
personal needs.
benefit pension or inflation protection face greater
challenges in maintaining a comfortable income
Taking control of your financial future
and often need meticulous planning or are willing to
In an unpredictable world, proactive financial
accept higher investment risk.
planning is essential. Regularly reviewing pension
Societal expectations around retirement are also
savings, withdrawal amounts and whether your
shifting. Retirement is no longer viewed as a fixed
funds will last are crucial steps. Checking your
endpoint. Although the pandemic briefly accelerated
retirement dates and planning for potential income
retirements, the proportion of pensioners earning
gaps can help you avoid surprises.
income has risen again since 2021. While the average
Exploring phased retirement options and
person aspires to retire at 62, half expect to work
considering the lifestyle you want early on can
beyond their State Pension age.
lead to better-informed decisions. By planning
ahead, you can secure your finances and enjoy the
Balancing benefits and barriers
Returning to work offers benefits such as staying
active, maintaining social connections, boosting
income and enjoying flexible hours. However,
04
retirement you deserve. t
tailored support to ensure your savings last.
Source data:
[1] Research by Ipsos for Standard Life in June 2025
surveyed 6,000 UK participants aged 18-80, including
working, unemployed and retired individuals. The sample
was representative of the UK population by age, gender and
region. Among those aged 55-80 who had retired, 8% had
returned to work, 1% were actively seeking to return and 7%
were considering it.
This article does not constitute tax, legal or financial
advice and should not be relied upon as such. For
guidance, seek professional advice. A pension is a longterm investment not normally accessible until age 55 (57
from April 2028, unless the plan has a protected pension
age). The value of your investments (and any income
from them) can go down as well as up, which would
affect the level of pension benefits available. Investments
can fall as well as rise in value, and you may receive back
less than you invest.
