OLDER people 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 their savings again, Aviva's spring "real retirement" report found.

The over-55s typically receive £1373 a month in income, which is an extra £151 a month compared with spring 2013.

Loading article content

Those approaching retirement and aged between 55 and 64 have seen the biggest jump in their average incomes since 2012, a £233 increase over the two-year period taking average incomes for this age group to £1402. People aged 65-74 have a typical monthly income of £1368 and those aged over 75 have around £1290, 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.

Three-fifths (60%) of older people said the state pension makes up part of their income, while 58% of 55-64-year-olds said they still earn money from employment, dropping to 7% of over 75-year-olds.

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."