Pensioners take a fifth more of their pensions as inflation bites
However, soaring daily expenses have forced thousands of people to stay at work longer and many who were already retired to return to work.
“Gone are the days of worrying about whether people were going to blow the whole 25pc lump sum on a Lamborghini,” Ms O’Connor said. “Now it seems people would feel uncomfortable even shelling out for a used Toyota Prius.”
Sarah Taylor, 61, from Tunbridge Wells in Kent, said she should work as long as she can and delay her retirement to ensure she can retire more comfortably.
“I feel the pressure to keep working for as long as I can. There is a lot of uncertainty right now with the economy and I feel financially vulnerable,” she said. “I’ve been contributing to a pension for years, but every time you check how much you can get in retirement, it’s never as much as you think.”
Meanwhile, many older workers are sleepwalking into a retirement crisis as millions of people between the ages of 58 and 76 are not saving enough, according to B&CE, a pension body. This will result in many working longer.
Many are also being forced back into employment due to the cost of living crisis. A record 174,000 people aged 65 and over found jobs in the three months to June.
According to a survey last month by Rest Less, a digital community for the over 50s, a third of retirees have considered returning to work, with half citing rising costs as one of their main reasons for returning. do it.
There was a 200% increase in online searches for “part-time jobs for retired professionals” and a 100% increase in searches for “jobs for retirees,” according to data from Lottie, a retirement home comparison service. The cost of living crisis and a “pension crisis” are the reasons most often given to justify a return to work.
Will Donnelly of Lottie said: “It’s no surprise we’ve seen a wave of retirees returning to work. Rising energy prices will hit people on fixed incomes very hard. This will be the main factor for those returning to employment.