Over one million pensioners are now having to work to supplement their income according to figures released today.
Thirteen per cent of over-65’s are earning an average of £15,400 per year to top up their pensions, a report by MetLife revealed. This compares to eight per cent of pensioners doing so ten years ago.
However, the data highlighted the good news that more people now have a private or company pension – 72 per cent of people have additional arrangements in place compared to 66 per cent ten years ago.
MetLife said that this indicates that government advice for people to save for their retirement rather than depend on the state pensions is now hitting home. It also means that the average income for a pensioner is just seven per cent lower than the average income for those in work.
“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,” said Simon Massey of MetLife.
Massey added that pensioners should recognise the way in which their retirement will be funded has now changed.
“That has to mean recognising what real retirement looks like nowadays. Clearly a major part of that is the increasing numbers who are working and earning substantial amounts on top of pension incomes,” said Massey.
The data also suggests that couples are more likely to supplement their income than single pensioners. Over a fifth of couples will do so compared to just six per cent of those on their own.