A growing number of UK professionals are expecting to work beyond the traditional retirement age in a trend referred to as ‘unretirement’, with new research from Robert Walters highlighting financial concerns as a key driver.
According to the study, 70% of professionals anticipate delaying retirement due to financial pressures, while 31% of those who have already retired have returned to work in some capacity over the past 18 months.
The findings reflect a broader trend of ‘unretirement’ that shows no sign of slowing. Figures from Legal & General suggest that 2.8 million retirees in the UK have already re-entered the workforce. Chris Eldridge, CEO of Robert Walters UK, attributes this shift to a combination of rising living costs impacting pension savings and the increased flexibility offered by hybrid working arrangements.
“There are various types of unretirement,” Eldridge explains. “Some professionals take ‘micro’ or ‘soft’ retirements as a strategic career break, while others make more permanent returns due to financial or social factors. Current flexible work practices and ongoing skills shortages create an ideal environment for those considering a form of unretirement.”
Financial Pressures Driving Unretirement
As the UK’s workforce ages, the State Pension Age (SPa) is set to rise to 67 for both men and women between 2026 and 2028. Meanwhile, annuity sales have reached a ten-year high, indicating that many are seeking financial security in later life.
A study by Standard Life found that among over-55s returning to work, 43% were doing so to increase earnings for a more comfortable retirement, 34% cited struggles with living costs, and 27% reported that their pensions were insufficient. Robert Walters’ survey found that 46% of those returning to work did so primarily for financial reasons.
Eldridge notes that working longer is becoming a common strategy for retirees to stretch their financial resources. “Coming out of retirement allows individuals to reduce the period their savings need to support them while continuing to add to their pension pots,” he says.
Older Workers Still Overlooked
Employers are largely supportive of retirees returning to work, with 77% stating they view unretirement as a positive development. Among businesses, 36% believe unretirees are essential in addressing skills shortages.
However, despite this support, many older professionals still feel overlooked. Over half of workers aged 60+ report that they struggle to secure new roles due to their age. Additionally, 89% feel their current employer does not take the time to understand their professional needs.
Eldridge stresses that businesses must translate their support for unretirement into tangible action. “Regardless of employers voicing the positives, many professionals over 60 still feel excluded. Companies must take deliberate steps to integrate unretirees if they want to benefit from their experience.”
Cultural and Social Benefits of Unretirement
Beyond financial considerations, social and cultural factors also play a role in unretirement. A quarter (24%) of returning retirees cite social wellbeing as their primary reason for coming back to work, while another 20% seek mental stimulation.
Younger colleagues also recognise the benefits of having retirement-age professionals in the workplace. Over 40% of UK professionals believe that working alongside older colleagues enhances intergenerational teamwork and camaraderie, while a third say they bring diverse perspectives.
Eldridge believes that supporting unretirement could help businesses manage multigenerational workforces more effectively. “For years, managers have struggled with integrating multiple generations in the workplace,” he says. “Embracing unretirement could provide solutions by fostering knowledge transfer, improving diversity of thought, and addressing critical skills shortages. At the same time, it enables older workers to maintain financial stability, social engagement, and mental wellbeing.”
