The soaring cost of living is driving older people back to work, according to recent research. Here, Take a Break reports…
As Sharon Moxon sat in front of her computer for her final work meeting, there were well wishes from colleagues who had gifted her a generous voucher for a garden centre, as a leaving gift.
After 30 years in the civil service, working for the Department for Work and Pensions, Sharon, 62, took early retirement in March of 2022.
Her husband had retired a year earlier, and they spoke of travel. Sharon looked forward to the freedom of being able to make last-minute plans, and it seemed she’d have plenty of time to enjoy her garden.
However, just a few months later, Sharon returned to work. It’s being called ‘The Great Un-retirement’ — as older people have started to return to work in the midst of the cost-of-living crisis.
Economic activity levels (a measure of people in work or looking for work) among people aged over 50 are at their highest levels since the pandemic began, as older workers start to ‘un-retire’, according to Rest Less, a digital community and advocate for people in their 50s, 60s and beyond.
Rest Less analysed the latest labour market data from the Office for National Statistic and found that the number of people aged over 50 in work or looking for work stands at 10,974,000 — the highest level since January to March 2020, just before the pandemic.
The analysis showed an increase in economic activity of 116,000 among workers aged over 50 in the past year (March-May 2002, compared to March-May 2021). Driving more than half of the total increase were men aged over 65, whose economic activity levels increased by 66,000 (or more than eight per cent in a year).
Economic activity levels among women over 65 increased by 37,000 (or just under seven per cent).
Research from the Office for National Statistics, published in March 2022, which asked more than 12,000 50-70-year-olds who were not currently looking for work if they would consider going back to work in the future, found that one in three 50-64-year-olds and one in 10 of 65+-year-olds said they would.
Rest Less ran a poll among 500 of its retired members and made similar findings: 32 per cent of retired Rest Less members in June 2022 said they’d consider returning to work at some point or that they were already working again after retirement.
Of the respondents who said they would consider going back to work, 32 per cent said they’d return for the mental and social stimulation, 12 per cent said they’d be returning because of the increase in the cost of living, and eight per cent said it would be to top up their pensions. The remainder said it would be a mix of all these reasons.
Sharon says she has a mix of reasons for looking to return to work. She spent 25 of the 30 years she was at the DWP working various Saturday jobs, and in the final 17 years, she worked Saturdays for the Probation Service, sourcing community service partners. So, going from working six days a week to being retired left her feeling restless.
‘I wasn’t washed up,’ Sharon says. ‘I had years of experience I wanted to share with people.’
Sharon, from Herne Bay, Kent, started applying for part-time positions, including a 10-hours a week job at a local school. But, having mentored people throughout her career and having taken a number of online courses to upskill, she decided to set up her own mentoring business, Life Skills and Leadership — It’s All About You!
Stuart Lewis, chief executive of Rest Less, says: ‘An early retirement can often seem like a dream when you’re stuck in the thick of the daily grind, but for many, giving up work abruptly can also result in a loss of structure, social connections and purpose, which can leave people feeling lost at times.
‘For example, we often forget just how much of our social network and contacts come from the work environment.
‘At the same time, spiralling inflation and volatile financial markets are impacting pension funds. So, some people who thought they could retire comfortably during the pandemic are now having to un-retire and find work again to bring in some extra income and top up their pensions while they still can.’
Sharon admits that while mostly driven by a desire to help others achieve their personal and professional best, her decision to return to work was also influenced by financial reasons.
‘Like everyone, we’ve had to adapt to the rising cost of living,’ she says. ‘Our gas and electric has gone up and we have to think twice about what we spend money on.
‘It’s a worry. The other day I spent £74 on petrol to fill the tank. That’s the most I’ve ever spent on petrol in my life.
‘I’m not bothered about fancy clothes or holidays. But I want to be able to comfortably afford to pay for the lease on my car and to park in town and go for coffee with friends.
‘With the increased cost of living, you have to either cut back on what you spend, or increase your income.’
Sharon admits to feeling a little cheated to have reached retirement at a time of economic crisis.
‘I’ve worked since I was aged 15. I met my husband late in life, but managed to clear a £185,000 mortgage by working two jobs.
‘I feel I did my bit. But the cost of living crisis has hit at a time in my life when I really didn’t need it.’
And according to Age UK, many older people share Sharon’s sense of fear and anxiety about their finances being squeezed.
Caroline Abrahams, Charity Director at Age UK, said: ‘Judging from what we’re being told at AGE UK, many older people are looking ahead to the winter with extreme trepidation.
‘With inflation high and rising, we can see why — the prospect of scrambling to afford to keep the heating on is truly frightening. It’s no wonder that significant numbers are returning to work in an effort to shore up their finances against the storm.
‘In some cases, carefully laid retirement plans, which looked economically sustainable a year ago, are now shot to pieces.
‘That really is a huge disappointment if you’ve been looking forward to having a rest and the opportunity to enjoy yourself after many years of working.’
CASE STUDY
Still working at 73
I’m in my mid-70s and it’s hard to avoid concerns about the rising cost of living. When I see the headlines, I’m grateful I have the additional income I earn through direct-selling with Forever to top up my pension. Over the last few months, I’ve taken steps to increase my direct-selling, partly due to rising living costs. This has given me a financial cushion to help with the price rises I’m facing.
From Dorothy Norris, 73