Retirees working part-time to make ends meet

An increasing number of retirees are now working part-time to supplement their retirement income, according to a new study by MCM Advantage.

Many individuals take on part-time employment when they retire in order to fill their time and the survey found that 21 per cent of those who did find work were doing so for this reason, while 31 per cent do it for social interaction.

However, more than two-fifths of people (44 per cent) said they were doing so because their retirement income was not enough to see them through to the end of the month.

On average each retiree that is in part-time employment is working more than five hours a week. Some 38 per cent of them are working one to two hours a week, while 29 per cent work three to five hours a week. A further 33 per cent of people are working over six hours a week.

The study also revealed some six per cent of retirees are running their own business in order to boost their finances and five per cent are acting in the capacity of a non-executive director.

Of course, with retired people carrying on with work there are fewer opportunities for young people, which is worrying for those desperate for employment.

Aston Goodey, sales and marketing director at MGM Advantage, said: "What is worrying is that for many people retirement is a part-time pursuit because they need to continue working to supplement their income."

Many people coming up to retirement are worried about the impact leaving work will have on their income as they may not have enough to make ends meet every month. For this reason many either stay on in their current role or find a suitable part-time job that covers the amount of income they need.

What can often make things worse is the amount of debt some people are in when entering retirement. It is important for people to manage their debt before they get into retirement to enable their income to be used on more important things.

By James Francis