Pensioners in the UK forced back into work due to Cost of Living Crisis

In the UK, pensioners are being forced back into the workforce due to the Cost of Living Crisis. The number of people aged 65 and over in work has increased by a third in the past six years, as retirees struggle to make ends meet. According to recent reports, many pensioners are having to take on low-paid jobs in order to make ends meet, or are using their pensions to supplement meagre incomes. This is putting a huge strain on their health and wellbeing, and forcing them to give up their retirement plans altogether.

Cost of Living Crisis
The cost of living crisis is largely due to rising energy bills. In the last few years, prices for gas and electricity have increased significantly, putting a strain on household budgets. The government has attempted to help by introducing a price cap, but this has only had a limited impact. As a result, many families are struggling to keep up with their energy bills. This is especially difficult in the winter, when heating costs are at their highest.

Unfortunately, there is no easy solution to this problem. It is particularly putting the elderly population under strain as many are already living off small pension amounts and find it difficult to heat their homes. The government needs to do more to help families who are struggling with energy costs. Perhaps they could offer subsidies or introduce more affordable energy tariffs. Whatever the solution may be, it is clear that action needs to be taken to address the cost of living crisis in the UK.

Changes to Pensions due to High Inflation Rates

In 2016, changes made to the state pension system mean those collecting the new state pension will receive a bigger increase than those on the triple lock pension scheme. The 2016 pension reform replaced the basic and a previous earnings-related additional state pension with a new flat-rate state pension. This pension was higher than the existing basic state pension. The September inflation rate is used to calculate the increase in payments from April the following year. Due to the current high inflation rates, this means that the state pension will increase by just over 10% next year. This means that just looking at the next year, those with a triple lock pension are likely to be around £200 worse off, but again this is just looking at a very specific time period.
Going back to work
As a way to supplement existing pensions, an increasing number of retired pensioners are going back to work, even if just part-time. This is one of the only options available to them, unless they look at other ways of generating cash through equity release or selling other assets they may own. Luckily there suitable retirement jobs available to those interested, especially for individuals with significant experience and skills in different sectors/industries. Due to Brexit, there are also more jobs available in the retail and hospitality industries. Over the next year we will perhaps see an increase in the silver workers!