Still at work after age 65

New figures from the Office for National Statistics (ONS) show that an increasing number of people aged 65 and over have stayed in work.

Back in 2001, around 412,000 people aged 65 and over were still working. This has increased to 870,000 in the final quarter of 2010.

This increase in people continuing to work after the traditional retirement age is reflected in both full-time and part-time employment.

The recent recession has had an interesting impact on people remaining in work after age 65.

Whilst the recession caused a fall in the level of full-time employment in the 16 to 64 age range, for those aged 65 and over it increased by 0.5% when measured from the first quarter of 2008 and the final quarter of 2010.

We should recognise that this could be partially the result of our ageing population in the UK.

It is difficult to know for sure whether these figures show people continuing to work in older age due to choice or necessity. We suspect the latter.

Because the recession prompted a big fall in many pension fund values, and at the same time a fall in interest rates, it is likely that many people were unable to afford to retire.

Seeking advice from an independent financial adviser in the years before your preferred retirement age can help you to avoid the pitfalls associated with falling stock market values or lower annuity rates. Continuing to work past age 65 should always be about choice rather than necessity.

Photo credit: Flickr/Silentmind8