Rethinking Retirement

Often known as your ‘golden years’, many people look forward to retirement as a chance to unwind and relax after a busy working life. In addition to their pension, some retirees will have savings so they can live comfortably and enjoy a bit of luxury once they no longer have a salary. However, due to the recent cost of living crisis and the price of everyday essentials rising, it is getting harder for people to live well on their pension and savings alone.

At Chums, we have partnered with Age Space to highlight the impact the rising cost of living has had on retired people. To do this, we conducted a survey asking 1,000 people across the UK between the ages of 55 and 86 about their plans for retirement, their role in the workplace and their opinions on triple lock pensions. In this article, we’ll discuss the results of the survey and how it relates to the current financial situation.

What did our survey say?

In our survey, the split between respondents who had left the workplace and those who hadn’t was fairly even, with 44.7% saying they were retired and 55.3% saying they were still in work. Both groups of people were asked about their retirement and general future plans, which led to some interesting results.

We asked those who were already retired whether they had plans to return to work. While the majority answered that they didn’t, over 20% answered that they do plan to or they’re considering it.

Those still in work were asked if they have plans to work past retirement age (currently 66 for both men and women in the UK), and nearly 58% said they were either considering it or planning to do so. Both these results show a high number of people who are willing to work post-retirement age, even returning to work in some cases.

To find out more, respondents were asked why they were considering working past the retirement age. The most common responses were enjoyment of work, mental stimulation, financial security and uncertainty around the current economic situation in the UK. While some people do simply enjoy their jobs or industries, many responses also implied that the cost-of-living crisis had a big impact on their ability to retire comfortably.

One particularly interesting statistic that the survey found was that women are more concerned about their financial situation than men. The most common female response was financial security, whereas for men, it was the enjoyment of work. This could suggest that the economic crisis is affecting women retiring more than men.

Annabel James, director at Age Space, suggested another reason many over 55s are working past retirement age is due to the UK’s ageing population.

“With an ageing population, there are many more people who are working longer. In many ways, this is to be welcomed for its positive benefits to mental and physical well-being as well as financial aspects.” She then explained, “However, for some there is no option of course which is of concern as the Government resets the financial agenda in the Autumn budget.”

The Triple Lock Pension Policy

Another important element that the survey looked at was respondents’ thoughts on the Government’s Triple Lock Pension Policy. Under this system, the state pension is guaranteed to increase each year by whichever is highest – inflation, average increase in UK wages or 2.5%.

We asked our respondents whether they believed that this policy should be continued, modified or scrapped. Many people (66.3%) said it should continue with a further 16.2% of people saying it should be modified as the support isn’t good enough. Only 2.6% said it should be scrapped, and the remaining 14.9% reported that they didn’t have an opinion on it.

These responses suggest that the consistent rise in pension is something that people need, especially now. To gain more of an insight, we asked people why they thought it should be scrapped, continued or modified. Those who thought it should be continued spoke about how the policy helps them to feel secure financially and how, for some pensioners, it is essential. On the other hand, people who would like it scrapped argued that it’s unsustainable and only relevant for those who need it.

One respondent who gave a particularly interesting answer thought the policy should be modified as it isn’t good enough support. They argued that inflation doesn’t consider the price rises of individual everyday products; instead, it is calculated as an overall average. Therefore, the pension increase isn’t enough or reflective of rising living costs.

With the new Labour Government, as of September 2024, there has been no change to the Triple Lock Policy, as it was within their manifesto to keep the policy. However, in the recent autumn budget, it was announced that the winter fuel allowance, which is an annual payment of up to £300 to every pensioner, will be available only to those on pension credit.

Dress for success in the workplace

With such a surprisingly large number of people working or planning to work past retirement age, we wondered what their experience of the workplace was like as an older person. When asked whether they felt their physical appearance affected how they were treated by peers in the workplace, over 25% responded that they did. In answering, some respondents even went a step further and referred to instances of age discrimination they faced as well as how appearance, in general, plays a large role in impressions of people. One respondent explained how, as a woman in IT, she felt under pressure to look good and fit in, highlighting how this could be a particular issue for women in typically male-dominated workspaces.

Prompted by the survey responses, we asked our experts here at Chums to provide some top tips on how to dress confidently for work, especially when starting a new retirement job.

• Check the dress policy. – Depending on where you work, there will be a different policy. Some offices may require you to dress quite formally, while others may have a smarter casual approach. Check to see how formally you need to dress, and then you can plan your outfits accordingly. If there isn’t an explicit dress code provided, you can always take inspiration from what your colleagues wore during the interview process.

• Embrace your personal style – It’s important that you feel comfortable in your clothing, and choosing items that you like wearing can help with this. Whether you enjoy bold colours or more muted tones, you can find men’s or ladies’ clothing to match. Don’t feel any pressure to fit in with modern trends – simply wear what you find comfortable.

• Invest in quality pieces – Although it can cost more upfront, investing in high-quality materials such as wool or cotton can save you money in the long run. Soft, durable clothes not only last longer, but they’re also more comfortable to move around in, especially if you’re spending a lot of time sitting at your desk.

• Pay attention to fit – Your clothes should fit you, not the other way around, so make sure to find the right size and style for your body type. By wearing clothing that fits you well, you can both look and feel amazing.

• Have a good range of basics – In addition to more fun pieces, it’s good to have a collection of wardrobe staples, whether that’s a simple black dress, formal trousers or a cosy cardigan. You can then build your outfit from there. It’s also helpful when you’re rushing out in the morning so you can easily slip it on and still look ready for work.

Our partnership with Age Space

For this campaign, we have partnered with Age Space, an online resource centre and community providing expert free advice, resources and guides for anyone caring for or supporting elderly parents and relatives.

Annabel from Age Space explained how funding their retirement can be a cause for concern for many people. “One of the biggest challenges we face in the UK is how to fund later life and elderly care. For individuals who will be paying for their own care, there is so much uncertainty. For many at the start of their retirement it is a case of planning for the worst whilst hoping for the best.”

This is a trend supported by our survey findings, as more than two-thirds of respondents (68.8%) were concerned that they would need to act in order to live comfortably on their pension. Echoing this concern, Annabel went on to say:

“This is not sustainable, and it is our hope that the government will start to address the issues of health and social care in the UK so that many more people can enjoy their well-earned retirement without living in fear of running out of money.”

Save up to 20% with Age Space

As part of our partnership, for a limited time, we are offering a 20% discount across our site in order to help alleviate the burden the cost of living has had on over 55s. To be eligible for the discount, you need to spend at least £50. It doesn’t include items over £150 or those in Clearance. This discount also can’t be used with any other promotional code or offer.

Retirement is a well-deserved time of your life where you have the opportunity to do things you simply didn’t have time for during your working life, whether that’s learning a new skill, travelling, or just enjoying more time with family and friends. Although the current economic situation may mean your retirement looks different to what you expected, especially if you’ve taken on a retirement job, it can still be fulfilling. It’s a time to appreciate the simple things and do what you enjoy.

Let us know what retirement looks like for you and your opinions on our survey using #YourRetirementYourRules.