One million over 65s still in work poor pension income

The number of over-65s still in work has topped one million for the first time, official figures have revealed.

Office of National Statistics (ONS) labour figures for the three months up to the end of April show that almost one in 10 people over the age of 65 are still working, 615,000 of whom are men and 388,000 are women.

And retirement firm MGM Advantage has said a significant proportion of working pensioners are forced to continue employment into their twilight years because of their low pension incomes.

Breakdown: The number of over-65s still in work has broken the one million barrier for the first time.

MGM's Aston Goodey said: 'With people living longer, the experience of retirement is changing dramatically.

'There are significant numbers of people who now no longer fully retire at a set date and are looking at alternative working patterns, sometimes part-time work or non-executive directorships and consultancy.

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'What is worrying is that for many people, retirement is a part-time pursuit because they need to continue working to supplement their income.'

The proportion of people working past 65 varies considerably from region to region. As many as 11.4 per cent of pensioners in London are still in employment, compared to 6.7 per cent in the North East (see map below).

The number of over-65s in work is still outstripped by the 1.38million people who have retired before reaching the age of 65 and are classed as economically inactive, although this is down by 84,000 compared to the same period in 2012.

Regional disparity: As many as 11.4 per cent of people living in London aged 65 and over are still in employment, compared to 6.7 per cent in the North East

And this is a trend that is likely to continue as the number of people on lucrative final salary pensions dwindles as schemes shut down, with remaining workers having to take their chances on defined contribution pensions and annuities, which recently have been providing miserly returns.

According to MGM Advantage's own research, there are currently around 1.65million retirees who have taken a pension after the age of 55 but continue to work part-time.

Of these, some 44 per cent say they do so because of financial necessity to supplement their pension incomes, while 31 per cent do it for social interaction and 21 per cent so they have something to do with their time.

 

David Sinclair, of think-tank the International Longevity Centre UK, thinks the increasing numbers of elderly workers is positive for the economy.

He said: 'It is good news that we now have one million older workers. But the average age of retirement remains too low.

'In an ageing society, and with the state pension age increasing, it is important for individuals and the economy that we increase the number of years we spend in the workforce.

'Far too many people still leave the workforce too early, creating a huge drag on the economy. We must invest in improving the health of older people whilst also ensuring there is a supply of jobs to meet their needs.'

W