More older people continue to work past pension age
Published on 04 January 2013 11:30 AM
Up to 1 in 4 people who are eligible for a state pension remain in some form of employment, according to a new report from a leading insurance group.
The latest Real Retirement Report from Aviva found that 23% of 65-to-74-year-olds were still earning a wage in December 2012 - up from 18% when the first report was released back in February 2010.
The latest report also found that the average over-55 earned £1,444 each month and had £14,544 stashed away in savings as of last month, which was more than the typical wage (£1,239) and accumulated savings (£11,590) in February 2010.
Scrapping of Default Retirement Age
This could be explained by the Government's decision to scrap the Default Retirement Age (DRA) in 2011, which has put an end to workers having to retire at 65 and was welcomed by age equality campaigners who claimed it as a victory in the war against age discrimination.
However, Age UK urged caution over the new figures, preferring to point out the current tough economic conditions as a possible factor:
Michelle Mitchell, Age UK's Charity Director-General said: 'More and more people aged 65 and over are choosing to work, if they can, in this tough economic climate.
'For many, the reasons are financial, a result of the decreasing value of pension annuity rates and the rising state pension age. Others just enjoy the social interaction work brings.'
Beware of discrimination
And Michelle Mitchell also pointed out the likelihood of continued discrimination: 'Age discrimination is still rife in the UK workplace with almost half of unemployed people aged 50-64 out of work for more than a year - a higher rate than any other age group - often with little chance of getting a job.
'With the State Pension Age due to rise in the near future - meaning that people will need to work longer - it's more critical than ever that the government acts to ensure employers look beyond a person's date of birth and see the skills and experience that older workers offer.'
More working men than women
More than a quarter (30%) of over-55s plan to carry on working up to 11 hours a week after retiring from full-time employment, with men more likely to adopt this approach than women.
The report said that pensioners who plan to work on a part-time basis after retirement would not pose a threat to most other jobseekers, with the majority of job hunters looking for longer hours and full-time positions.
Copyright Press Association 2013