The proportion of over-55s working past the traditional retirement age is increasing and older people are increasingly dipping into their savings to maintain their standard of living, according to research published yesterday by Aviva.
The insurer's latest Real retirement report found that 23% of 65-74 year-olds cited wages as an income source, compared to 18% in early 2010. Just under a third (30%) of over-50s said they would continue to work part-time when they retire.
Aviva also found that the average monthly income for over-55s has increased by just £109 - from £1,335 to £1,444 - over the past two years, with the bulk of this increase coming from those aged 65-74, who have seen their income rise by £166 from £1,318 to £1,484.
According to the firm, this income boost for those over the traditional retirement age - 'the retiring population' - has been driven by more people working past the Default Retirement Age, which was phased out in 2011.
Clive Bolton, managing director of Aviva's At Retirement business, said: 'Whether it's through choice or necessity, the fact that people are working for longer shows how vital it is to work hard to achieve financial stability, so you can enjoy your retirement without the constant worry about making ends meet.
'The growth of income among the retiring population is a clear sign they are taking the opportunity to prepare for the future, and prioritise their outgoings to clear existing debts.'
The survey also found that the average saving pot for over-55s has fallen by over £4,000 in the last quarter - down from £18,364 in the third quarter to £14,544, with savings having fallen particularly significantly among those aged over 65.
Having to dip into savings to maintain their standard of living has seen the percentage of the long-term retired who now have less than £2,000 saved increased from 23% in the third quarter to 30% in the three months to December.