Retirement scrapped for millions due to rising costs, new report shows

Retirement scrapped for millions due to rising costs, new report shows16 per cent have already returned to work and millions more are planning toCommentsMoneyNeil Shaw Assistant Editor (Money and Lifestyle)06:52, 13 Apr 2026View 3 ImagesSome people no longer retire at state pension ageA significant proportion of older people are deciding to “unretire” as the financial reality of retirement falls short of expectations, according to research. One in six (16%) retirees surveyed for Standard Life said they have already returned to employment (8%) or are considering doing so.‌While some have returned or are considering returning to work for social reasons, such as feeling disconnected from other people when not working, financial pressures are also triggers for finding a job again, the survey found. Three in 10 (30%) retirees said their standard of living is worse than before they retired, compared with just over a fifth (22%) who have seen an improvement.‌Many also feel unprepared for retirement. A fifth (20%) said they did not realise how much money they would need in retirement, with 21% wishing they had planned their retirement more thoroughly and 19% saying they had not appreciated how long retirement would last. Standard Life said inflation has also had a significant impact on retirees’ spending power.‌View 3 ImagesOlder people are working years past 'retirement'For people who retire before state pension age, or who do not have a salary-based defined benefit (DB) pension with built-in inflation protection, maintaining income in later life can require more planning and, in many cases, greater investment risk, it said. Mike Ambery, retirement savings director at Standard Life, said: “Retirement is no longer a single moment where work simply stops.“For many people it’s becoming a more flexible journey, shaped around the life they want to live, and more flexible approaches to work – including part‑time roles and phased retirement – are making it easier for pe...