The latest figures from the Family Resources Survey, published by the Department for Work and Pensions (DWP), shows that the proportion of male employees saving into a pension when aged 65 or more rose from 6% in 2006 to 21% in 2007. Similarly, the proportion of female employees of the same age contributing to a pension rose from 5% to 15%.
The rise followed the launch of new age laws in October 2006 which give greater rights for benefits and employment opportunities for those aged 65 or over.
Paul Macro, a senior consultant at Watson Wyatt, said: “Employers have responded to age discrimination rules by giving older workers more opportunity to benefit from company pension schemes and it looks like many have jumped at the opportunity.
“Some people want to carry on working, while others feel they have no choice. But we’re starting to see the more flexible approach to retirement needed to defuse Britain’s demographic time bomb.”
The chance to offer pensions to those over 65 has been a turn-off for some employers, but welcomed by those such as Nationwide, which had a policy of employing those aged over 65 before the latest age laws came into place.
Other figures from the government survey show that 59% of pensioners receive an income from occupational pensions and that the average amount paid out was £156 per week in 2006/2007.
As a proportion of the income paid out to all pensioners, occupational pensions represent 25% of the total, benefit income 44%, earnings 17%, investment income 10% and personal pension income 4%.
Figures released by the DWP’s Pensioners’ Income Series also shows that the median occupational pension income received by recently retired pensioners has fallen in real terms for the second year running, after peaking in 2004/2005.
