If you’ve got your retirement date fixed firmly in your mind, then you’re in the minority according to new research… which explains why a staggering 70% of professionals currently in work may well be delaying their exit from the world of work. By Tony Watts OBE

The findings come from research carried out by from global talent solutions provider Robert Walters, which found that the trend of “unretirement” — where retirees return to work — is accelerating… with the main causes being economic pressures along with the increasing ability for employees to work more flexibly.

Of those who have re-entered the workforce after retiring, financial insecurity was cited as the main reason by 46%, but almost a quarter (24%) said they chose to return for the mental wellbeing and social engagement that interacting with others offered.

A recent study by Standard Life offers a more detailed picture of this emerging trend: it highlighted that falling pensions (27%), rising living costs (34%), and the need to boost retirement funds (43%) are the key factors behind this shift.

And just how many people are making the move back into work? In fact, Legal & General research showed that 2.8 million retirees in the UK have re-entered the workforce in the last few years alone.

Flexibility a key factor

Chris Eldridge, CEO of Robert Walters UK, said the shift towards unretirement was being driven by increased living costs and the rise in flexible working.

“There are various types of unretirement – from retirees taking conscious ‘micro’ or ‘soft’ retirements as strategic career breaks or soft-launches into retirement – to those who decide on more permanent moves to come out of retirement triggered by financial or social factors,” Eldridge said.

“The fact is that current flexible work practices and ongoing skills-shortages will be an ideal playground for anyone considering a form of ‘unretiring’.”

Another contributing factor is the steady increasing of the State Pension Age (SPA) – set to rise to 67 between 2026 and 2028, but the current subject of a lot of debate.

But are employers ready for more workers looking to unretire?

Well yes… and no. While 77% of employers say they see retirees returning to work as a “positive”, with fully 36% of businesses recognising the potential of older workers in filling key skills gaps, many older professionals themselves report facing barriers.

In fact, according to the Robert Walters’ research, over half of workers aged 60+ say they feel overlooked during job applications, and 89% of over-60s say their employer does not take the time to understand their professional needs.

In response, Chris Eldridge has called on businesses to “put their words into action if they want to benefit from unretirement.

“Welcoming this cohort back could unlock benefits like intergenerational knowledge transfer, diverse perspectives and filling critical skill gaps. It also helps un-retirees gain financial stability, social interaction and mental stimulation, promoting a healthier over-60s demographic.”

So, what might “unretirement” do to your financial plans for the future?

If you’re wondering whether your retirement plans still stack up, or whether you might to extend your working life ­– perhaps by taking on a different or part time role – you can see at a glance the impact this will have on your long-term situation using your RetireEasy LifePlan.

Any different scenarios you run will generate easy-to-understand graphs, showing you at a glance just how much you can comfortably draw down from your pensions, savings and investments in each year of your retirement.