The baby-boomer generation will produce "a new type of retiree" – healthier, more social but likely to stay in work well into their seventies, according a new survey.
One in four people aged 65 to 74 are still earning a wage, according to Aviva's latest Real Retirement Report. In the next decade 6.5 million people, born in the wake of the Second World War, will turn 65.
Longer-lasting good health and the social benefits of staying at work are pushing the average retirement age ever higher, but increasing financial burdens in old age also mean that many simply cannot afford to retire, the survey of more than 14,500 over-55s reveals.
In December 2012, 23 per cent of people aged between 65 and 74 were still earning a wage, according to the report, up 5 per cent in three years. The state pension age is set to reach 65 for women by November 2018 and then to 66 for both men and women by October 2020.
The cost of living, the decreasing value of pension annuities and the cost of supporting children and grandchildren are all putting the pressure on elderly workers. Some 80 per cent of respondents said they were concerned by rising living costs. "More and more people aged 65 and over are choosing to work, if they can, in this tough economic climate," said Michelle Mitchell, director-general of Age UK.
The income of a typical over-55 has also risen in the past three years, from £1,239 each month to £1,444, with £14,544 in savings. However, Age UK warn that an ageing workforce has led to an increase in age-related discrimination at work.Reuse content