Analysis and research has found that the median additional earnings for working over-65s hit £296 a week.
MetLife’s analysis of pensioners’ income statistics shows that nearly one in seven over-65s are boosting their retirement income by working. The data has shown that the number of over-65s working has increased from just 8% of the pensioner population in the past 10 years to 13%. Median earnings from working are £296 a week adding up to annual pay of nearly £15,400.
The reason for people to feel they need to keep working is because of the squeeze on saving and the drop in investment income. In 2004/05, the proportion of pensions earning money from investment was 72% and has dropped to around 64% now.
Government data highlights that the retirement saving message is hitting home. Approximately 72% of all pensioners have private or company pensions compared with just 66% a decade ago. Furthermore, average pensioner incomes after tax and housing costs are now just 7% below average incomes for working households.
Simon Massey, wealth management director at MetLife UK commented: “The rise in average pensioner incomes is a very welcome development which needs to be supported so future pensioners can look forward to similar or higher standards of living. That has to mean recognising what real retirement looks like nowadays and clearly a major part of that is the increasing numbers who are working and earning substantial amounts on top of pension incomes.
“The contrast unfortunately is low amounts being earned from investments, demonstrating the need for retirement savers and advisers to look at a range of solutions which can help ensure people have guaranteed incomes for life in retirement.”