Pensioners in UK working well into retirement

Pensioners in the UK are increasingly working well into their retirement, cutting back on spending and dipping into their savings to maintain their standard of living.
 
Rather than living out their later years in comfort, Aviva's latest Real Retirement Report has found that almost a quarter of 65 to 74-year-olds in the UK were still earning a wage, even as the average savings for people aged 55 and over fell from £15,262 to £14,544 in the last two years.
 
According to charity Age UK, it was 'very worried' that so many people did not feel they had enough savings to see them through retirement, while according to Aviva, it hammered home to future generations to get saving now.

According to Clive Bolton, managing director of Aviva's At Retirement business, whether it was through choice or necessity, the fact that people were working for longer showed how vital it was to work hard to achieve financial stability, so one could  enjoy retirement without the constant worry about making ends meet.

The research found that by supplementing their income through part or full-time work beyond the state retirement age, pensioners aged 65 to 74 had increased their monthly income to £1,484, in the fourth quarter of 2012, a rise of £166 on the same period in 2010.
 
Meanwhile, monthly spends by over-55s were down, taking into account the rate of inflation, with average outgoings of £1,231 down from £1,300 this time last year.
 
Meanwhile, the 55+ in Wales were dipping into savings to pay off their debts, with research showing debts at an all-time low and dropping savings levels.
 
The report found that while over-55s in Wales had seen a 12 per cent drop in their savings from Q4 2011 when they had an average of £12,499, to £10,999 in Q4 2012.
According to analysts, the shrinking savings pots may be the result of over-55s in Wales typically saving just £18 per month, as against the national average of £28.67.
 
Only 6 per cent of over-55s in Wales had unsecured debts, and those who did owed far less, an average of £8,700, against the national average of £23,676, suggesting debt repayment had been a priority in Wales.
 
According to Iwan Rhys Roberts of Age Cymru, the leading charity for older people in Wales, while it was welcome news that the debts of over 55s in Wales were at an all-time low, it was a concern that they were cutting back on their savings, and that they had fewer savings than the UK average.
 
He said, the rising cost of living was clearly a big worry for many older people in Wales, as was the issue of finding the money to pay for unexpected expenses over the next 12 months.