Money And Boredom Keep Pensioners Working

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Pensioners are carrying on working because they are bored and need the money, according to a new study.

Just over a fifth of recent retirees have gone back to work or plan to do so since they turned 65 years old, says research by pension provider Prudential.

Almost two thirds keep working because they want to stay physically and mentally active, while 56% confessed they needed the money to boost their retirement income.

Most are so willing to return to work that they will volunteer for nothing (16%) or take a cut in pay (51%).

The Prudential argues that the data proves retirement should not be a set date for everyone because the reality is many over 65s carry on working, even if they put in fewer hours than before hitting retirement age.

Staying active

Some see retirement as an opportunity to work harder – 5% earn more after retirement than before and 8% become entrepreneurs and start their own businesses.

The study also found the most popular jobs for retirees returning to work are in teaching, administration and agriculture.

More men tend to stay working after retirement – 51% of women give up work for good at state pension age compared to 44% of men.

“Many people are returning to work because they enjoy staying active and having a reason to get up in the morning, but for many it’s not an option and they have to turn out to earn because they can’t make ends meet otherwise,” said a Prudential spokesman.

“The financial benefits are obvious, but sometimes people overlook some additional advantages, like deferring the state pension because they have other cash coming in.”

Putting off the state pension

Putting off the date when the state pension is paid adds to the pot.

In 2015-16, deferring the state pension for a year adds £627 a year to the payment.

If someone had delayed taking the state pension for a year last year, they would receive £128.01 a week instead of £115.95.

From next year, the interest rate is sliced in half for new retirees.

Experts estimate pensioners have to draw the enhanced state pension at the current rate for 10 years for deferring the payment to show a profit – and that timescale doubles from next year.

Find out more about deferring the state pension

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