We are all aware that the cost of living crisis is having an impact on us all and has lead to many people taking up second jobs. Now, following the latest data published by the Office for National Statistics (ONS), we can see that the crisis is also a trigger for people coming out of retirement.
What does the data tell us?
The ONS data, published this month, shows that the number of people classed as “economically inactive” for the period August to October has decreased in comparison to the previous quarter.
“Economically inactive” is the description given to describe those who are not in employment and who have not been seeking work within the last four weeks and/or are unable to start work within the next two weeks.
The data shows that the economic inactivity rate was estimated to be 21.5%, which equates to around 76,000 people going back into employment. On looking at the data broken down, the largest group of individuals that return to employment was those aged between 50-64 years.
Furthermore, in a separate piece of research, this time carried out by Legal & General, data shows that 2.5 million employees will need to delay retirement because of the cost-of-living crisis, and out of those, approximately 1.7 million would have to delay it indefinitely.
Whilst the research shows there are other reasons why people wish to delay retirement, such as not feeling old enough to do so or just loving their work, it was the cost-of-living crisis that was the main reason.
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If you have concerns or queries about how 2023 might look for you, we recently hosted a webinar that looked at 2023 and planning for the year ahead.
We discussed how the year may play out and the key things to look out for, as we enter the new year.
If you would like to watch this webinar on demand, you can do so here.