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.
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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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