Pensioners return to work due to lack of funds

| July 20, 2008 | 0 Comments

Due to the rising cost of living, pensioners in the UK are being forced to delay their retirement, or return to work.

Research from life insurance provider Zurich has established that nearly three-quarters of people who do not seek retirement or investment advice are having to work after retirement age when they discover that their pension does not allow them a comfortable lifestyle.

A survey conducted by Zurich found that 31% are returning to work because of financial reasons and not because they enjoyed working.

At Zurich’s recent credit crunch conference, The Right Honourable Michael Portillo said rising living costs, inflation and worries of a recession has caused uncertainty for many people approaching retirement.

A growing amount of people are staying on at work or returning to work to ease financial pressures.

However, other reasons given for those considering returning to work included wanting to remain active in retirement (34%) while 22% of Britons believe they still have a contribution to make and would therefore consider continuing to work. Furthermore, 10% said they would miss the atmosphere of the workplace.

Zurich’s research found that Britons are unrealistic about their expectations in retirement and should plan ahead by seeking financial advice.

The survey also revealed that 74% have never sought financial advice for retirement planning and worryingly, 69% of those aged 55 and over have never sought advice.

Commenting on the findings, Tony Solomon, business development director at Zurich UK Life, said it is encouraging to note that many intend to stay active during retirement but people must be alerted to the importance of planning for their retirement from an early age.

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