More older people 'staying in work'

Elderly people on benchOne in four 65 to 74-year-olds are continuing to earn a wage, in a rising trend of older people remaining in the workplace for longer, a report found.

Some 23% of people in this age group were still wage earners in December 2012, compared with 18% when insurance group Aviva's first Real Retirement Report launched almost three years ago.

Aviva said that the trend of people working for longer looks set to continue as baby boomers pass the age of 65, with 55% of 55 to 64-year-olds drawing a salary, compared with 41% in February 2010.

This has already helped to fuel a rise of income and savings among over-55s during the last three years, the report said.

The typical over-55 had an income of £1,444 each month along with £14,544 in savings in December 2012, compared with a monthly income of £1,239 and savings of £11,590 in February 2010.

Workers can no longer be forced to retire at the age of 65 or over, following the abolition of the Default Retirement Age (DRA) in 2011, a move which was hailed by older people's campaigners as a milestone in the fight against age discrimination.

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.

"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."

Aviva's latest report found that just under a third (30%) of over-55s plan to continue working part-time after they retire from their full-time job, with men more likely than women to want to do this.

However, the typical over-55 only plans to spend 11 hours working per week, suggesting they will not necessarily be a threat to the vast majority of other job seekers, who may be looking for longer hours, Aviva said.
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