The latest Real Retirement report also found one in four (23%) 65 to 74 year olds were still wage earners in December 2012, compared with 18% in February 2010.

As a result, the typical over-55 has an income of £1,444 each month along with £14,544 in savings (December 2012), compared with a monthly income of £1,239 and savings of £11,590 in February 2010.

Despite 80% being concerned by rising living costs over the next six months (December 2012), over 44% of over 55s plan to use their extra time in retirement to travel and two thirds (66%) plan to carry out charity work.

Roger Marsden, head of at retirement at Aviva, said: “What we are seeing is the first baby boomers setting out a new model for later life, and getting the most out of their improved physical health and the freedom to continue working for longer.

“Many people find that staying active in a job helps to keep them young at heart – with the bonus being that it boosts their earning and savings potential in the process.

“The key to making the most of this opportunity is for people to start planning for their retirement well in advance.

“This way, as [they] approach the age of 65, [they] have the freedom of choice about [continuing] to work or not, rather than feeling forced to carry on out of the demand to meet financial commitments.”