Returnment - the new retirement

Pensioners are being forced to delay their retirement, or return to work because of the rising cost of living, according to research from Zurich.

The survey reveals that 64% of Britons of retirement age are considering carrying on working after retirement, with nearly a third (31%) of people putting off retirement for financial reasons.

This emerging trend, described by independent think tank the Future Laboratory as ‘Returnment', first unveiled at the recent Zurich credit crunch conference, reflects the changing nature of retirement in the UK.

As well as financial pressures, it seems there are other reasons why people are considering working. Zurich's research reveals that 34% of people want to stay active in their retirement whilst over a fifth (22%) of Britons believe they still have a contribution to make and would therefore consider continuing to work.

One in ten people (12%) believe they will miss the buzz of working life whilst a quarter (26%) of those surveyed plan to keep working because they are worried about being bored in retirement.

Speaking at Zurich's recent credit crunch conference, The Rt Hon Michael Portillo commented, "The combined impact of the rising cost of living, rising inflation, fears of recession and the constant media coverage of the credit crisis, has created insecurity for a huge number of people approaching retirement concerned about their financial future. Given that so many people are aware that they will have financial difficulties in retirement, more and more people are staying on at work, or returning to work to help ease the financial pressures they face ahead".

It seems there is also a north / south divide when it comes to the reasons for returning to work. For those in the north, financial pressures (31%) were cited as the main reason for continuing to work. However elsewhere in the UK, staying active was more important followed by financial pressures, followed by concerns about being bored in retirement.

Worryingly, it seems that Britons are failing to seek financial advice to ensure that they have made appropriate arrangements for their retirement. Zurich's survey also reveals that seven out of ten people (74%) have never sought financial advice for retirement planning.

It seems the younger generation are not reaping the benefits of long term financial planning, with 94% of those aged 25-34 choosing not to seek advice. And for those approaching retirement, it seems that the pre-retirees are also missing out on financial advice. Almost seven out of ten people (69%) of those aged 55 and over have never sought advice, whilst a similar number of those aged 45 to 54yrs (68%) have never sought advice.

Zurich's survey also shows that many people are expecting to enjoy a full and active retirement, without considering the full financial implications. Whilst 42% of people recognise that they are not saving enough now to afford their target lifestyle in retirement, more than half (52%) of people are still expecting to take two to three holidays abroad each year.

As well as taking several holidays when retired, nearly a third of Britons (31%) intend to socialise a few times a week whilst three out of ten people (30%) plan to go to cultural events, such as the theatre and the ballet, at least once a month.

Tony Solomon, Business Development Director, Zurich UK Life, commented: "As life expectancy continues to rise and the amount of time people spend in their retirement increases, many people are re-evaluating how they will spend their retirement. This emerging trend of returnment reflects the changing nature of retirement as people continue to be active.

Yet it is worrying to see that people, especially those that are most vulnerable, are still not getting the financial advice that they may need. Seeking financial advice will allow people to develop a greater understanding of the levels of income they can expect in retirement and what steps they should take now, to ensure they can enjoy a full and active retirement".