Nearly one in 10 retirees have returned to the workforce or are considering doing so as living costs continue to rise across the UK.

New research by Paragon Bank found that 4% of retirees have already started work again in some form, while a further 5% are considering doing so.

The findings, based on a study of 1,200 over-55s, indicated that the most common step that retirees are taking to increase their income is selling shares or other investments (16%), followed by taking money from their pension (12%). Meanwhile, 4% said they were considering releasing equity out of their property.

Paragon’s study also found that 42% of over-55s felt worse off than this time last year, with only 6% feeling better off. Over half (53%) said they were paying more for food in their weekly shop, with 40% paying more for heating and electricity.

More than eight in 10 (81%) respondents said their pension was their main source of income, followed by investments at 7%. Furthermore, 4% said full-time work provided their main income stream, with 4% also stating part-time work.

Commenting on the bank’s findings, Paragon savings director, Derek Sprawling, said: “Retirees are exposed to cost of living increases as it is challenging for them to increase their income. This is driving some people back into the workforce as they look for additional cash to supplement their pensions or investment income. At the same time, our research also shows those retirees who can are supporting family members feeling the squeeze. 

“With challenges for themselves, or to support their family, it’s more important than ever to maximise the returns from savings and for savers to be proactive. Rates offered by smaller and mid-tier banks have been increasing in recent months, whilst many rates offered by the high street providers have remained stubbornly low. Savers with fixed levels of income need to act to ensure they are maximising their money.”

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