The latest data from the ONS found that economic activity levels for people aged 50 and over are at their highest levels since the beginning of the pandemic. This is because older workers are coming out of retirement and back into the workplace.

The most significant increase was in men over 64, whose economic activity levels increased by 8.5% in one year, whilst for females in the same age group, there was a 6.8% increase.

Further research has unveiled that 32% of retired workers would consider returning to work at some point or were already working again after retirement. Some reasons behind these decisions are that they want to return for the mental and social stimulation that working provides, whilst others say they want to top up their pensions.

As the cost of living continues to spiral and people struggle with ongoing increases in household bills, particularly energy costs, many retirees are returning to work to put themselves and their families in a stronger financial position.

Employers should aim to understand the reasons behind the motivation to return to work and correspond with the appropriate measures to satisfy their needs and expectations. For those looking to retire, employers could consider introducing a phased-in retirement approach bolsters their benefits package.

This approach would enforce employee engagement and loyalty whilst employers could see enhanced production levels and strengthened commitment to the business.