Older people with jobs 'on the rise' as baby boomers opt to stay in employment

A growing trend has emerged of older people staying in employment as life expectancies increase and workers want to save more money for a happy retirement, according to new figures.

Around one in four (23%) people aged between 65 and 74 were still in paid employment in December 2012, according to Aviva's latest Real Retirement Report.

That figure has risen by 5% since the insurance group first launched the report three years ago.

Aviva has said the proportion of people with jobs in that age group will continue to increase as members of the baby boomer generation pass the age of 65.

The latest report shows that more than half (55%) of those aged between 55 and 64 are in paid jobs, which has grown from around four in 10 (41%) as recently as February 2010.

This trend has helped to fuel a rise over the past three years in over-55s' incomes and savings, Aviva added.

While the typical monthly income for an over-55 was 1,239 with savings of 11,590 in February 2010, their typical income had risen to 1,444 by December 2010 while their savings increased to 14,544.

Just under one in three (30%) people aged over 55 intend to remain in part-time employment after retiring from their full-time jobs, according to the study, with more men than women expressing the desire to do this.

Aviva's head of retirement Roger Marsden said the first baby boomers are "setting out a new model for later life".

Their improved health and greater freedom have enabled them to stay in employment for longer and enjoy the financial benefits. He explained: "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."

The new report may provide some encouragement to policymakers who are concerned about how people will be able to afford to enjoy a reasonable retirement as they are living for longer.

Amid concerns that people are not putting enough savings aside the Government has been attempting to encourage a culture of saving more for retirement.

Copyright Press Association 2012