UK consumers aged 55 and over have seen their income levels rise to their highest level since November 2010 as people work longer, according to new research.

The average monthly income for this age group rose to £1,303 in March 2012 as older people took measures to ensure that they enjoy a comfortable retirement.

With high levels of inflation eroding the value of savings pots and the government's quantitative easing programme causing annuity rates to fall, the study from Aviva shows that those approaching retirement are forced to stay in employment for longer.

According to the Real Retirement report, 37 per cent of over-55s are still working, with eight per cent of this group aged over 75.

Over-55s also increased their savings pots, with the average amount saved each month reaching its highest level since January 2010 - £39.97. This age group now has a total of £14,198 in savings, up from £11,427 in March 2011.

Furthermore, the proportion of over-55s without savings has fallen by three per cent to 17 per cent over the past 12 months.