MetLife has reported nearly one in seven over-65s are boosting their retirement income by working, earning around £296 in addition a week.
The firm’s analysis of pensioner’s income statistics published by the government each year shows the number of over-65s working has increased from just 8 per cent of the pensioner population in the past 10 years to 13 per cent.
Additionally, median earnings from working are £296 a week adding up to annual pay of nearly £15,400.
A continuing squeeze on saving and investment income, which generates just £312 a year for pensioners, has highlighted a need to keep working.
In total, the proportion of pensioners earning money from investments has dropped from 72 per cent in 2004 to 2005 to around 64 per cent now.
According to MetLife, the government data is highlighting that the retirement saving message is hitting home, with around 72 per cent of all pensioners having private or company pensions compared with 66 per cent a decade ago.
Average pensioner incomes after tax and housing costs are now just 7 per cent below average incomes for working households.
The increasing number of working pensioners and the continued pressure on investment income highlights the need for flexibility and certainty with retirement income solutions, according to MetLife.
Simon Massey, wealth management director at MetLife UK, said the increase in average pensioner incomes is a very welcome development that needs to be supported so future pensioners can look forward to similar or higher standards of living.
He said: “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.”
ruth.gillbe@ft.com