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One in 10 Working Past 65

ONS data has revealed that one in 10 over the age of 65 are still in employment - and according to a new investor survey 30% of us believe we we will work until die

Emma Wall 15 November, 2013 | 9:37AM
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More than one million Britons aged 65 or older is now in employment. There is no longer a state imposed retirement age of 65, meaning that if you need to continue to work in later life, you can. And this is increasingly the case as figures from the Office of National Statistics revealed this week.

People are living longer - and this extended life expectancy has meant the Government has raised the age at which you can claim state pension. You can calculate when you will be able to claim state pension using the Government's online calculator, but thanks to rising living costs and poor returns on cash savings more people are being forced to supplement their pension income with a wage. 

One in 10 Britons aged 65 or older may be in employment, but for those who are younger their pension prospects are bleaker. 

According to the BlackRock Investor Pulse report a third of Britons believe they will never fully retire and for workers aged 25-34, this number rises to two in five.

"We are all living longer and our retirement savings are working much harder against headwinds of low interest rates and stubbornly higher levels of inflation, thereby eroding the purchasing power of their savings, said Tony Stenning, at BlackRock. 

"Working in later life is going to be a reality for many to ensure they don’t outlive their savings.  Younger Brits still have time on their side though, by saving regularly and from as early as possible, they will be able to build up a comfortable nest egg to help them in their later years."

There is some good news for pensioners however. The Pensioner Property Equity Index revealed this week that homeowners aged 65 and over now have property wealth of £792.75 billion. This is the highest level since Key Retirement Solutions started its Pensioner Property Equity Index in March 2010.

More than a third of this wealth is - unsurprisingly - stored in homes in London and the South East. 

London property worth £144 billion belongs to mortgage-free pensioners while in the South East pensioners own £143 billion of property without mortgages. 

While downsizing may be impractical for many pensioners, equity release may help to ease financial burdens. 

In the first six months of 2012, home owners released £424m of equity in their properties in order to fund retirement – the largest amount in three years.

The most popular form of equity release, also known as a lifetime mortgage, involves securing a loan against the value your property. The interest builds up over time and this total, plus the initial amount borrowed is repaid on the sale of the property - usually when the owner dies or is moved into a care home.

Equity release will never leave your estate as schemes typically charge double the interest of ordinary mortgages.

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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About Author

Emma Wall  is former Senior International Editor for Morningstar