One in four 55 to 64-year-olds reported that rising living costs are likely to mean they have to put retirement plans on hold in the next year, according to research from Over50choices.
The number of working age people in early retirement was found to be at a record low of just over 1 million, the lowest number since 1994.
The research found that a fifth (22%) of those aged 55 to 64 who were already retired might need to return to work in the next 12 months.
Furthermore, almost two-fifths (38%) of people in this age bracket who were still working, and 12% of those aged 65 and above, may have to work more hours to make ends meet.
The Office for National Statistics (ONS) reported this week that the number of people under 64 who were in retirement fell by 93,000 over the past 12 months.
Over50choices’ ‘Boomer Barometer’ found that 35% of people aged 55 to 64, and a further 20% of those aged 65-plus, would struggle to pay their bills in the year ahead, while 22% of 55 to 64-year-olds and 11% those above 65 who pay rent or still have a mortgage, would struggle to afford it.
Just 6% of over-55 homeowners would consider equity release in the next year, this rose to almost a fifth (17%) among those with a mortgage.
Similarly, 10% of over-55s considered selling or downsizing their home this year, jumping again to 25% of homeowners with a mortgage.
Ashley Shepherd, founder and managing director at Over50choices, said: “Our new Boomer Barometer shows just how much impact the cost-of-living crisis is having on people in, or nearing, retirement.
“One in four of over-55s say they will struggle to pay their bills this year, with many being forced to eat into their savings and some having to resort to credit to pay for things they need.
“Furthermore, many look set to change their retirement plans to ensure they have sufficient income to keep them afloat.”
She added: “A fifth of over-55 homeowners who still have an outstanding mortgage also look set to consider equity release this year to help them navigate the cost-of-living crisis.
“The popularity of equity release has risen substantially in recent years with over £6.2bn borrowed in 2022 alone; a record year, up 23% year-on-year.
“Our research has shown that the majority of the over-55s in the UK still don’t fully understand how equity release works and that it’s a highly regulated and safe guarded product.
“We want to educate and empower consumers to help them be as informed as they can and have created calculators and tools to help them on their journey.”
