Growing numbers of people are postponing their retirement in the recession and working past state retirement age, according to Watson Wyatt.
Analysis of the latest Office for National Statistics (ONS) jobs figures suggests the over 65s are one of the few age groups where employment is still growing.
The ONS figures show 1.4m aged 65 and over are still working, up from 1.2m a year ago.
John Ball, head of defined benefit consulting at Watson Wyatt, says: "Ironically, the recession may be keeping some older people in work for longer - they are postponing retirement because their savings and properties have lost value."
The bulk of working pensioners are aged 67 and under, and this group is growing rapidly due to high birth rates after the Second World War.
Ball says it is unlikely growing elderly employment will displace younger workers, and will instead lead to higher levels of employment overall.
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