Older people in the UK are starting to feel the benefits of the improving economy, with around £150 a month more in their pockets than they had a year ago, a report has found.
People aged over 55 are becoming more likely to cite savings and investments as a source of their income in signs of confidence returning to the economy as people seem more willing to start spending savings again, Aviva’s spring Real Retirement report says.
The over 55s typically receive £1,373 a month in income, an extra £151 a month compared with spring 2013, it adds.
The report says those approaching retirement and aged between 55 and 64 have seen the biggest jump in average incomes since 2012, with a £233 rise over the two-years taking their figure to £1,402.
People aged between 65-74 have a typical monthly income of £1,368 and those aged over 75 have around £1,290, the report found.
Almost one-third (29%) of older people identified savings and investments as a source of their income, up from 24% a year ago.
The average amount that people have in savings and investments is £18,632 and people aged 65-74 have the most put away typically, at £25,938, the report says.
Three-fifths (60%) of older people said the state pension made up part of their income, while 58% of 55-64-year-olds said they still earned money from employment and 7% of over 75-year-olds did so.
Clive Bolton, managing director, retirement solutions at Aviva, said: “This latest report reflects a shift in the views and experiences of the over-55s as they begin to feel the benefits of the improving economy.”