“Households with one or more people who are past state pension age are paying out nearly £9bn in income tax a year, analysis has found.
Of the 8.7m so called pensioner households in the UK, 1.4m of them contain a worker generating taxable income.
The research by pension and investment provider Aegon found that the number of people still working past state pension age had increased from 12 per cent in 1997/98 to 17 per cent today.
A growth in people working past pension age was accompanied by a rise in average earnings, as pensioner couples saw their weekly wages after inflation increase 30 per cent from £410 to £534 today.
Steven Cameron, pensions director at Aegon said:
“Gone are the days when reaching state pension age meant a total end to work. Many people are choosing to keep working and earning, perhaps by cutting back gradually on the amount of work they do, even once they’ve started taking their pension.
These people are contributing significant amounts to the nation’s finances through the tax they generate while also helping the broader economy through their work.”
Cameron also said that despite the current climate being favourable for pensioners, with many living on decent incomes, this “golden era for pensioners” could not last forever.
“Both final salary pensions and inflation busting increases to the state pension are unlikely to continue indefinitely so it’s important that society is changing with more people able to choose to work past traditional retirement ages,” he added.”