Generation of OAPs happy to keep working: Over-65s with jobs up by 124,000 in a yearThose aged over 65 who have jobs also benefit from the 'feel-good factor'They enjoy higher standard of living, better health and longer life expectancy
23:04 GMT, 16 December 2012
Pensioners facing higher costs of living are working in ever greater numbers, according to a report yesterday.
The number of those aged 65 or over who are still in work soared by 124,000 over the past year.
But the report, from the Saga Group, also reveals that those pensioners who have jobs benefit from the ‘feel-good factor’.
Happy: Pensioners that work benefit from a 'feel-good factor' according to a report that said the number of OAPs with jobs had soared by 124,000
They enjoy better living standards than those without jobs in the same age group.
Instead, it is older people who would like to work but are unable to find a job who are facing the toughest times.
Saga’s report says that the total number of those aged 65 and over in employment has risen by 15 per cent – nearly one in six – in only 12 months.
There are several reasons for the rise.
There are several reasons for the rise. Inflation is higher for older people and fewer people have final salary pensions
The inflation rate for older people is running higher – at 10 per cent per annum – than for younger adults because of fast-rising prices for food and utility bills.
Both items make up a larger fraction of the spending of over-65s than they do for the general population.
In addition, fewer people have traditional final salary occupational pensions, which give a guaranteed income.
However, the figures are also a measure of longer life expectancy and rising health standards.
As a result, growing numbers of those reaching retirement age are fit to work and are likely to remain so for years.
The Saga report also speaks of a ‘leap in happiness’ for older people.
Its figures are based on both official government data and a survey by Populus, which Saga commissioned, of 11,000 older people.
Saga, which provides goods and services to older people, said that higher employment among the over-65s had contributed to a rise in quality of life for the age group.
The improvement was measured in terms of their living standards, health and general well-being.
quarterly report said: ‘A difficult start to the first half of 2012 was
followed by a leap in happiness and wellbeing during Britain’s golden
‘However, some of these significant improvements in the quality of life index waned a little in the last quarter.
expectations have risen, and whilst employment of older people has
increased, long-term unemployment remains a problem and savings income
Dr Ros Altmann said it was important that policy makers act to prevent inflation squeezing living standards
The report added: ‘Although measured inflation fell
back towards the Bank of England’s 2 per cent target, the squeeze on
older people’s incomes continued, and there are further rises in the
Saga welcomed ‘resilience’ in the labour market.
But the organisation also warned that ‘long term unemployment remains an issue’ for older people.
Saga chief Dr Ros Altmann said: ‘The past two quarters indicate that things are generally improving.
‘However, as we enter 2013, it is important that policymakers act to prevent inflation squeezing older people’s living standards.’
The retirement age – the point at which employers can legally dismiss workers without paying compensation – is currently 65 for men.
For women, the pension age varies between 60 and 65, depending on an individual’s date of birth.
It will rise gradually to 65 for all women by 2018.
But the rising cost of pensions and longer life expectancy has encouraged governments to raise the pension age ever more quickly.
The age at which people can claim the state pension will eventually go up to 66 by 2020 for both men and women.
There will then be a further shift to 67, beginning in 2026.