Close Menu
Invest Insider News
    Facebook X (Twitter) Instagram
    Sunday, July 6
    Facebook X (Twitter) Instagram Pinterest Vimeo
    Invest Insider News
    • Home
    • Bitcoin
    • Commodities
    • Finance
    • Investing
    • Property
    • Stock Market
    • Utilities
    Invest Insider News
    Home»Finance»The financial impact of returning to work in later life – should you ‘unretire’?
    Finance

    The financial impact of returning to work in later life – should you ‘unretire’?

    August 29, 20244 Mins Read


    Reaching state pension age doesn’t have to be the end of your working life, and some are using it as an opportunity to start a new career.

    The default retirement age of 65 was scrapped in 2011 and many now choose to work beyond the current state pension age of 66 for a variety of reasons, said The Times, including a “lack of savings, loneliness and love of the job”.

    Figures from the Office for National Statistics, for April to June 2022, show the number of people aged 65 years and over in employment increased in the quarter by a record 173,000 to 1.468 million, which is also a record.

    Subscribe to The Week

    Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

    SUBSCRIBE & SAVE

    Sign up for The Week’s Free Newsletters

    From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

    From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

    Continuing to work or retraining can provide more financial options, said Saga Magazine, “especially if you’re nervous about relying on pension and savings alone”, plus it can provide “tremendous mental stimulation”. 

    There is a rising trend of older people returning to work in later life, said Standard Life, known as “unretiring”. However, there are various factors to consider when determining whether this is the right path for you.

    Where to work

    Older workers returning to work in later life are an “attractive option” for employers, said Rest Less, as they offer experience, a strong work ethic, and are “organised, efficient and confident”.

    You cannot be “forced to retire”, said Independent Age, and one option is discussing a “phased retirement plan” with your employer to move to flexible working to “fit in around caring responsibilities or to give you time for other things”.

    Alternatively, you could go freelance or start your own business, added Saga, to achieve “some autonomy over your work pattern”.

    You can get advice from the National Careers Service, which has a skills health check to help “decide what kind of jobs might be right for you”.

    It is also worth considering adult apprenticeships, said The Apprenticeship Guide, which can provide “valuable opportunities for those seeking to upskill or make a significant career change”. 

    Tax and state pension implications

    You could boost your state pension and reduce your tax bill by working past age 66.

    If you are working past age 66, it may be worth waiting to receive your state pension payments for a couple of years as you will be paid more, said The Telegraph, “as long as you live long enough to enjoy it”.

    This is known as deferring your state pension. You need to defer for at least nine weeks, and after that the state pension rises by about 1% for every nine weeks deferred, “equivalent to just under 5.8% for every year”. 

    Additionally, you’re likely to “take home more money”, said NIDirect, as you don’t pay any National Insurance once you are over state pension age.

    What returning to work means for your retirement

    You may not have to pay National Insurance once you reach state pension age but there is still income tax to consider.

    If you are already taking money out of a private pension through an annuity or drawdown, said MoneyWeek, extra employment income “could potentially add to your income tax bill” and even push you into a higher tax band.

    This can also be an issue if you are already receiving the state pension as its current rate of £11,502 a year will “swallow up most” of your £12,570 personal allowance, said Saga.

    Plus, you may need an accountant to help with a tax return for the first time to declare untaxed income, added Saga, and it is important to watch out for self-assessment scammers “targeting those who are new to the process”.



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Previous ArticleFor NorthWestern Energy, trust is a one-way street • Daily Montanan
    Next Article Bitcoin Recovers Despite U.S. ETFs 1782 BTC Sales

    Related Posts

    Finance

    Pour développer l’industrie des puces, la Suisse finance la recherche plutôt que le secteur privé – rts.ch

    July 6, 2025
    Finance

    “Le chantier est lancé”, un complexe sportif siglé MHSC et financé par le Groupe Nicollin va voir le jour à Pérols

    July 5, 2025
    Finance

    Iran – Israël : qui a perdu la guerre de la finance ?

    July 5, 2025
    Leave A Reply Cancel Reply

    Top Posts

    How is the UK Commercial Property Market Performing?

    December 31, 2000

    How much are they in different states across the US?

    December 31, 2000

    A Guide To Becoming A Property Developer

    December 31, 2000
    Stay In Touch
    • Facebook
    • YouTube
    • TikTok
    • WhatsApp
    • Twitter
    • Instagram
    Latest Reviews
    Commodities

    Cocoa hits 4-month low as demand weakens, supply grows

    July 29, 2024
    Stock Market

    Brooks Macdonald moves listing to London Stock Exchange main market

    March 28, 2025
    Investing

    1 Top Cryptocurrency to Buy Before It Soars 6,200%, According to Cathie Wood of Ark Invest

    August 20, 2024
    What's Hot

    Analysis-Investors expect market selloff will slow, stretch and spread

    August 8, 2024

    Risk to resilience: China’s economic security strategy

    July 27, 2024

    China’s Tech Stocks Lift CSI300 Despite Property Sector Woes

    July 19, 2024
    Most Popular

    Scheme of Arrangement for Acquisition of i3 Energy plc Becomes Effective

    October 31, 2024

    Stock markets sink, dollar rallies on Trump tariffs

    February 3, 2025

    La hausse du Bitcoin serait-elle bloquée par les ventes massives des gros détenteurs de BTC ?

    July 4, 2025
    Editor's Picks

    Brazil’s Lula to nominate Galipolo as cenbank chief, says finance minister

    August 28, 2024

    Lendable prépare le lancement d’un fonds ciblant des fintech notamment en Afrique

    April 25, 2025

    Liberty Rock Property names new managing director

    June 29, 2025
    Facebook X (Twitter) Instagram Pinterest Vimeo
    • Get In Touch
    • Privacy Policy
    • Terms and Conditions
    © 2025 Invest Insider News

    Type above and press Enter to search. Press Esc to cancel.