Worried retirees having to supplement their income amid the cost-of-living crisis, Charles Stanley

by | May 10, 2023

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Two in five (40%) retirees are worried about their retirement provision due to the continued rises in the cost of living, according to new research from Charles Stanley. 

Almost half (46%) of retirees say they are supplementing their income in other ways to ensure they have enough money throughout their retirement. Almost one in five (18%) have had to draw down from any savings they have, whilst one in eight (12%) relies on the income from their investments. 7% have continued to work full-time past the state retirement age, and almost the same number (6%) have invested in a buy-to-let property. One in 20 (5%) have started a side-hustle. 

Delving into why retirees have taken on additional work in retirement, a quarter (26%) did so to fund day-to-day activities, and almost the same number (25%) did so to help pay rising energy bills.

While the financial challenges of the cost of living is clearly having a profound impact, many are also choosing to work for more personal reasons – 45% returned to keep themselves mentally stimulated, whilst almost two in five (39%) took on extra work for personal fulfilment, and almost one in five (18%) did so to socialise/avoid being lonely.


Reasons why retirees have taken on addition work in retirement:

  • To keep myself mentally stimulated – 45%
  • Personal fulfilment – 39%
  • To fund holiday trips – 37%
  • To fund day-to-day activities – 26%
  • To help pay rising energy bills – 25%
  • To socialise/avoid being lonely – 18%
  • To try something new – 17%
  • To pursue a passion of mine – 11%
  • There are no reasons I have taken on additional work in retirement -7%
  • To help pay off my mortgage – 4%

Lisa Caplan, Director of Onestep Financial Planning at Charles Stanley comments: “Retiring is a milestone that many people look forward to, however with costs continuing to soar, that excitement is turning into anxiety and confusion. Continued rising costs – whether that be care costs, mortgage repayments, utility bills or day-to-day living expenses – are weighing heavily on people’s minds, leaving many worrying about how their retirement income will stretch accordingly.

“For those just about to reach or already in retirement, the current economic situation is forcing many to re-consider if they stay in work for longer or do in fact return. While some may return for more personal reasons, it’s important people have the choice to do so. The cost-of-living crisis has made it more difficult for people to save and maintain their funds for retirement. It’s vital that consumers therefore seek the right advice to understand what sort of retirement they will be able to achieve and how they afford it. Even retirees can’t rest on their laurels, and while some are clear on how they can generate income in later years, the cost-of-living crisis has highlighted the importance of having a financial plan in place to keep financially on track.”


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