The number of people aged over 65 in work has reached a new record.
There are now over one million people in work aged 65 or over according to the latest statistics from the ONS. That represents nearly one in ten of the 65 and older population – more than double the proportion at the start of 2001. As the graph shows, there has been a steadily rising trend, seemingly immune to the vagaries of the UK economy since the turn of the millennium.
ONS attributes the breaching of the one million threshold to more people staying on in work and also more people of this age group in the population (the first tranche of the post-war baby boomers is now 65+). The abolition of 65 as a statutory retirement age, which took full effect in October 2011, has probably also helped boost the in-work numbers.
ONS does not define the proportion of the 65+ workers whose financial situation means that they have no alternative to continued employment, even if it is generally part time. The generation now retiring is often thought of as the lucky ones because their working life coincided with the era of final salary pensions, but that is something of an oversimplification. Final salary schemes were not the province of small employers, nor were those in self-employment able to benefit.
If the idea of working beyond 65 does not appeal to you, make sure your retirement provision is adequate. Otherwise, B&Q may beckon…
It is often difficult to envisage the idea of retiring when you are in your thirties or forties, but it is worth giving serious consideration to the fact that the longer you are able to save for retirement, the lower the amount you will need to set aside.
We are living longer, yet the contribution the government makes to its senior citizens is decreasing, and the age at which we are entitled to receive a state pension is increasing.
With over 40 years experience, we will provide tax advice to help you make the right choices. Of course, personal and professional circumstances will greatly influence your decision and you may need assistance regarding the many pension or other investment options that are available.
If you would like to know more about this service we offer, please do get in contact with one of our partners on 0208 861 7575