Wages in the UK may be growing more slowly than the rise in inflation but, according to new research, the over-60s across the UK are seeing their earnings rise faster than any other age group.
According to Prudential's analysis of the Office for National Statistics (ONS) Annual Survey of Hours and Earnings (ASHE), average annual earnings for the over-60s increased by nearly £1,000 (€1,261, $1,687) between 2011 and 2013.
This is a significant boost as ONS figures show overall average salaries fell 1.2% year-on-year in June, equivalent to a drop of £1,054 over the last year. Consumer Price Index inflation rose to 1.9% in June.
The insurer also added that between 2011 and 2013, the average annual income for over-60s in work rose by 6.1% to £17,250.
Management roles also saw a surge in older workers, with an extra 32,000 over-60s managers in 2013 compared with 2011, a rise of 25.6%.
The rise of management-level over-60s appears to be reflected in the average annual incomes received by full-time older workers – in 2013 the average was around £25,200, compared with £24,000 in 2011.
"Our analysis suggests that the relative success of older workers in the labour market is down to a combination of their increasing willingness to work on rather than retire, and the recognition by employers of the unique experience and skills they bring to the workplace," said Stan Russell, retirement income expert at Prudential.
"Our previous research has highlighted the changing face of retirement and this latest analysis is further proof of the new retirement reality. Many older people are happy to stay in work for longer and they are now seeing the welcome side-effect of significant year-on-year increases in annual earnings."
However, Prudential points out that many over-60s may be forced into working longer because they do not have enough pension savings to survive.
"There are of course those who would prefer to give up work in their seventh decade but have had to delay their retirement because of insufficient pension savings," said Russell.
"It is important to remember therefore that the money earned in the later years of a career may be too little too late, despite the pay rises for the over-60s that we have identified. The best way to secure a comfortable retirement income is to save as much as possible as early as possible, and take the advice of a retirement specialist or financial adviser."