Pensioners re-enter workforce to pay their way
Nearly one and a half million pensioners are continuing to work to fund their retirement, according to new research from Key Retirement Solutions (KRS).
In the past decade, the proportion of pensions receiving income from earnings has increased from 12% to 17%, with 1.4 million pensioners now continuing to work during retirement.
Pensioner couples are also more likely to rely on earned income compared to 10 years ago, with 29% of couples receiving income from earnings, compared to 22% a decade ago.
Pensioners’ income from earnings between 1997-8 and 2007-8 rose by 71% to an average of £36 per week. This is compared to a 32% increase to gross pensioner income during the same period.
“The worrying trend that these new figures show will not come as a surprise to anyone, which is that state support is decreasing and pensioners are having to be more self reliant,” said Dean Mirfin, KRS group director.
“Of further worry is the widening gap between pensioners net and gross income, showing that taxation of our older population is rising,” Mirfin added.
Last week the Confederation of British Industry warned of an impending pensions catastrophe as the closure of company pension schemes across the country threatens to develop into a major crisis.