Number of over-65s still in work has increased dramatically while business favours return of default retirement age

Pensioners facing higher costs of living are working in even greater numbers, according to a report published today by over 50s insurance group Saga.

The number of those aged over 65 who are still working increased by 124,000 in 2012 compared with 2011.

The report claims there are several reasons for the rise. The inflation rate for older people is running higher – at 10% a year – 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.

Director general at Saga, Ros Altmann, said: “The past two quarters indicate that things are generally improving.

“However, as we enter 2013, it is important policymakers act to prevent inflation squeezing older people’s living standards.”….

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