Abolition of the DRA is encouraging people to draw a salary for longer
As predicted by many, the abolition of the Default Retirement Age (DRA) does appear to be encouraging people to stay in work for longer. Almost a quarter (23 per cent) of people aged between 65 and 74 were in work during December 2012, up from almost a fifth (18 per cent) three years ago.
The figures from Aviva's Real Retirement Report also show that the increase is likely to continue. Since February 2010, the proportions of people aged 55 to 64 earning a wage has gone up from 41 to 55 per cent.
Analysts have partly attributed the increase in numbers to the abolition of the DRA, which was phased out in 2011. A general improvement in the physical health of the population has also played a role. However, some voiced concerns that the combination of the rising cost of living and increases to the state pension age may be forcing some people to stay in work longer than they would otherwise have wanted.
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