A growing number of UK professionals expect to work beyond their planned retirement age, with 70% saying they will likely delay retirement due to financial concerns, new research suggests.
The findings, from global talent solutions provider Robert Walters, indicate that the trend of “unretirement” — where retirees return to work — is accelerating as economic pressures and changing work dynamics reshape career expectations.
The study found that 31% of “unretirees” — those who have re-entered the workforce after retirement — have done so in the past 18 months. Financial insecurity is the most common driver, the research found, with nearly half (46%) citing financial reasons for their return. But not all unretirees are returning solely for financial survival—24% said they chose to return for mental wellbeing and social engagement.
The findings align with broader trends. Recent data from financial services firm Legal & General suggest that 2.8 million retirees in the UK have re-entered the workforce. Meanwhile, a study by Standard Life highlights that falling pensions (27%), rising living costs (34%), and the need to boost retirement funds (43%) are key factors behind the shift.
A Changing Retirement Landscape
Chris Eldridge, CEO of Robert Walters UK, said the shift towards unretirement was being shaped by two main factors: increased living costs and the rise of flexible work arrangements.
“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 increasing State Pension Age (SPA), which is set to rise to 67 between 2026 and 2028. As pension pots fall short and economic uncertainty continues, more people are working longer to stretch their financial resources.
Are Employers Ready for the ‘Unretirement’ Wave?
While employers appear receptive to the trend, with 77% stating that they see retirees returning to work as a positive, many older professionals report facing barriers. Over half of workers aged 60 and over say they feel overlooked during job applications, according to the research, despite employers recognising the potential of older workers in filling key skills gaps.
Meanwhile, 36% of businesses said unretirees were crucial in addressing skills shortages. But age bias remains a challenge, with 89% of over-60s believing their employer does not take enough time to understand their professional needs.
Eldridge called on businesses to take action. “Regardless of employers voicing the positives of unretirement – many professionals over 60 still feel overlooked – employers must put their words into action if they want to benefit from unretirement,” he said.
A Win-Win for Businesses and Workers?
Despite the challenges, the benefits of unretirement are evident. More than two-fifths of professionals — across all age groups — believe having retirement-age employees in the workplace enhances teamwork and knowledge sharing, the research found. A third said older workers bring diverse perspectives, while 16% noted they help improve work ethic across teams.
For the unretirees themselves, the advantages go beyond finances. A quarter returned to work for social engagement, while 20% sought mental stimulation — factors that could improve both workplace culture and personal wellbeing.
Eldridge believes embracing unretirement could be key to tackling workforce challenges, saying that “[f]or years, managers have grappled with multigenerational workplaces, without realising supporting those pursuing unretirement might be the key.
“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.”
As financial pressures persist and workforce demographics shift, the era of straightforward retirement may be coming to an end, say experts. But if businesses commit to creating inclusive opportunities, unretirement could prove beneficial for employees and employers alike.
