The number of older people staying in work is rising, with more than one in four over-65s now earning a wage, says a new report.
Aviva’s latest Real Retirement Report reveals that in December 2012, 23 per cent of people aged between 65 and 74 were in employment, up from 18 per cent when the report was launched three years ago.
Furthermore, this trend looks set to continue as baby boomers head towards retirement, with 55 per cent of 55 to 64-year-olds drawing a salary, compared with 41 per cent in February 2010.
The recent scrapping of the default retirement age is thought to be helping the inclusion in the workplace of older people, while improved health in later life could also be responsible, says Aviva.
Roger Marsden, head of retirement at Aviva, said: ”What we are seeing is the first baby boomers setting out a new model for later life, and getting the most out of their improved physical health and the freedom to continue working for longer.”
The income of a typical person aged over-55 and still in employment has also risen in the past three years, from £1,239 each month to £1,444, with £14,544 in savings, the report revealed.
“Many people find that staying active in a job helps to keep them young at heart – with the bonus being that it boosts their earning and savings potential in the process,” added Mr Marsden.
However, with increases to the state pension age on the horizon combined with the rising cost of living, there are also concerns that older people are staying in employment for longer out of necessity rather than choice.
“There are, of course, many more people now aged over 65 but also those coming up to retirement may be finding their private or state pensions are not as good as they had hoped – meaning they have to stay at work if they want a reasonable income,” commented Dr Ros Altmann, director-general of Saga.