UK retirees face financial strain, many consider working past pension age

According to a Fidelity International study, a significant proportion of British adults aged over 55 are planning to extend their working lives because they lack sufficient retirement income, with 37% citing financial need as the main driver. This is the second-largest share in the G7. The research also reveals that roughly 30% of UK over-55s rate their retirement planning as poor, a stark contrast to the 12% figure reported for the United States.

Marianna Hunt, a personal finance specialist at Fidelity, stresses that early-career disruptions such as redundancies, health problems, or earnings declines in the 50s can dramatically undermine retirement finances. Additionally, the UK is positioned at the bottom of the G7 for policies that help people stay in rewarding work later in life, highlighting a gap in supportive infrastructure. Hunt argues that extending working years should be a genuine choice, requiring access to good-quality, suitable employment for older workers. The findings come as Prime Minister Andy Burnham proposes changes to the state pension system slated for 2030, including a shift from the triple lock to a double lock mechanism.