Topping up your pension

Some people reach retirement only to find their income does not meet their needs. Will we find delaying retirement or taking on additional part-time work becoming the norm?

A recent survey by a British financial services provider found 50 per cent of retirees admitted they had a funding gap when they finished work.

It also found a third of those surveyed discovered they didn't have enough income to have a comfortable retirement, while another one in 10 people said they were forced to get a part-time job to top up their retirement income.*

This is caused by a number of factors, from poorly performing pension schemes, quantitative easing, falling annuity rates and rising inflation. Older people are being especially hard hit by the rising cost of energy and food.

If you are still in employment as you approach State Pension age, it may be worth having a conversation with your employer about delaying your retirement - do you still enjoy your work and have skills and experience that are valuable to the business?

Perhaps you can move into a part-time role that is beneficial to you both, particularly if you also act as a carer for a partner or grandchildren?

If you decide to leave your main career path, perhaps you can move on to a new career more suitable to your needs. Many sectors, such as food retail, are now offering part-time roles aimed specifically at this group, as employers have identified that a more mature workforce offers a wide range of benefits.

While only 4 per cent of employed people nearing retirement, recently surveyed by The Age & Employment Network (TAEN), admitted to looking forward to a job with less seniority,** these workers are more motivated, reliable, have good social skills and see the role as a long-term opportunity.

In fact, many part-time workers are not only topping up their income, but enjoy the social interaction their roles bring. It is a chance to remain connected to their community and to retain a daily routine.

According to TAEN, the employment rate has increased for men and women aged 50-64: in 1995, 65 per cent of men and 49 per cent of women were employed, compared to 72 per cent and 58 per cent respectively in 2010.

You can assess your unique circumstances and how any additional income affects your entitlement to benefits at the UK government's website.

You will also find supplemental information by accessing the websites below, which aim to help people get the most out of their retirement.


Yorkshire Bank is not responsible for the content of external internet sites.


Useful links:

UK government -

Age UK -

Your Money -

Department for Work & Pensions -

The Age and Employment Network -



* Retire-Easy Report, Scottish Widows, January 2011

** The Age and Employment Network (TAEN) website.


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