Pensioners work part-time to bridge savings gap
The number of part-time pensioners in the UK is set to rapidly increase to one in five of those planning to retire in the next five years.
At present, 10% of retirees work part-time for an average of 14 hours a week, according to GE Life. Its research also showed nearly three quarters of post-retirees in part-time employment do not work for the company they were with prior to retirement. This factor has been utilised by companies such as B&Q and Tesco, which actively recruit older staff.
GE Life’s research found some retirees work part-time as a lifestyle choice, however, there are many who are forced into it due to inadequate pension provision. A third of respondents to GE Life’s study admitted they were financially unprepared for their retirement. Not unsurprisingly, the same percentage lack confidence in how they will face their retirement.
Scott Dolfi, chief executive of GE Life, said: “What many retirees don’t realise is that they can maximise their income significantly using the tools provided to them at retirement. For example, research from the ABI reveals that up to 48% of potential annuitants do not shop around for their annuity, because they are not aware that this is an option and therefore could potentially miss out on extra income through one of the various enhancements on offer.
“The best advice we can give for those at, or approaching, retirement is to speak to an independent financial adviser, who should be able to help them make the most from their money.”