Paragon has found that nearly one in 10 retirees have returned to the workforce or are considering doing so as the cost-of-living crisis bites.
The bank’s research of 1,200 over-55s found that 4% of retirees have already started work again in some form, with a further 5% considering doing so.
The most common step over-55s said they were taking to increase their income was selling shares or other investments (16%), followed by taking money from their pension (12%). Meanwhile, 4% said they were considering releasing equity out of their property.
The research found that 42% of over-55s felt worse off than this time last year, with only 6% feeling better off. 53% said they were paying more for food in their weekly shop, with 40% paying more for heating and electricity.
Actions over 55s are taking to reduce costs include reducing gas and electric use (46%), restricting car travel (44%) and going to a cheaper supermarket (41%).
81% of respondents said their pension was their main source of income, followed by investments for 7%. Meanwhile, 4% said full-time work provided their main income stream, with 4% stating part-time work.
Meanwhile, nearly 40% of savers are financially supporting members of their family due to the cost-of-living crisis, with those over 70 the most active. 21% have provided support to their children, while a further 17% have done so for grandchildren and other family members. Nearly half of pensioners aged 70-74 are mostly likely to have helped family, with 29% having provided support to their children and 11% to their grandchildren – 7% supporting other family members. Meanwhile, 43% of those aged 75-79 have supported family members, with 46% of those 80+ also doing so – compared with just 24% of those aged 18-34, and 21% of 35-54 year olds.
Derek Sprawling, Paragon Bank’s savings director, said: “Retirees are exposed to cost of living increases as it is challenging for them to increase their income. This is driving some people back into the workforce as they look for additional cash to supplement their pensions or investment income At the same time, our research also shows those retirees who can are supporting family members feeling the squeeze.
“With challenges for themselves, or to support their family, it’s more important than ever to maximise the returns from savings and for savers to be proactive. Rates offered by smaller and mid-tier banks have been increasing in recent months, whilst many rates offered by the high street providers have remained stubbornly low. Savers with fixed levels of income need to act to ensure they are maximising their money.”
