Increase in the number of over 65s still working

There are now 13% more people in the UK aged between 65-74 who are still working compared to six years ago, finds a new report.

The Aviva survey shows that fewer people across all age groups eligible to retire have done so compared to 2016. The greatest shift has been for those aged between 65 and 74 – 92% of this age group were already retired in 2016, and only 79% are now.

Matt McGill, MD Aviva Equity Release, explained, “In the years since we first carried out this research, significant events have impacted the way people feel about the economy, their futures and their retirement plans.

“Many of these events, such as the cost-of-living crisis, the pandemic and Brexit, have impacted people of all ages, but the increase in the State Pension Age has added new challenges specifically for the over 65s.”

Matt added, “While for some the income gap can be plugged by wages, our survey shows there’s still a significant shortfall for around a fifth of the over 65s, which has translated into them worrying more about having enough money in retirement.

“Despite this, the UK housing market has been on a steady upward trend since many current retirees bought their homes. Yet in most cases, the scale of the growth of people’s capital goes unrecognised – less than half (42%) of those we surveyed felt their home was worth more than their savings and investments.

“This suggests people may have accumulated more wealth in this asset than they realise. As cost-of-living pressures ramp up, the equity in people’s homes could become increasingly important when looking at ways to plan for a comfortable retirement.”

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