Three in 10 (30%) retirees in the UK are concerned they don’t have enough money to fund their retirement, research by Fidelity International has suggested.

As a result, 24% of retirees facing a shortfall have considered returning to work part-time, reflecting recent shifts in the UK workforce.

Fidelity International’s study, based on a sample of 3,000 UK adults, also revealed that alongside working part-time, one in five (19%) retirees who are struggling with the cost of living said they have considered downsizing their homes.

A further 12% said they are debating stopping financial assistance to their families.

Associate director, personal investing at Fidelity International, Ed Monk, said the rising cost of living is “impacting each generation in different ways”.

“Those in retirement face the challenge of covering increasingly expensive essentials through their pension and investments – knowing that anything they draw down now will diminish their pot for the future.

“Some are considering some form of return to work in order to help supplement their long-term savings. While the level of job vacancies around the country remains high, we are starting to see the number available fall – meaning competition for roles will increase.

“Retirees who are considering going back to work part-time should be aware of the impact this could have on their pension, especially if they have already, or are planning on, accessing it.

“Under the Money Purchase Annual Allowance (MPAA), once you take any money from a tax-efficient pension, you can then only contribute up to £4,000 per year to your pensions while benefitting from tax relief. Compared with the full annual allowance of £40,000, this could make a big difference to your future income in retirement.”

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