The hidden value of unpaid work by the over-65s

UK retirees are embracing voluntary work and providing vital help to families, charities and local communities, according to Aviva’s latest Real Retirement Report.

With 10.4 million over-65s typically giving up 10 hours each week to volunteer and support their families, the combined efforts of this ‘volunteer army’ add up to 104 million hours of free support: worth £643.8 million per week at the national minimum wage.

The report shows many over-55s are focusing on those closest to them in their retirement, with 50% helping or planning to help their families with occasional babysitting and 35% extending their family duties to include regular child-minding.

The typical over-55 who provides regular child-minding clocks up 30 hours a month, or 363 hours every year. At minimum wage, this is equivalent to £2,247 worth of free childcare – but with figures suggesting the average yearly spend on childcare for a child under the age of two is £5,103, the support of a retired relative is likely to be worth far more.

Recognising the financial pressures that later life can bring, 30% of over-55s plan to continue working part-time during their retirement.  But up to 46% also look for unpaid work in the voluntary sector in the form of fundraising, helping in a charity shop or providing practical support in the community such as ‘meals on wheels’.

Working in a charity shop (20%) is the most popular activity for over-55s seeking unpaid work, followed by a committee or trustee role (19%), teaching children to read (18%) and practical help such as DIY or cooking for people who need it (12%).

However, the over-55s haven’t given up on embracing their freedom after finishing full-time work, says Aviva.  With an established market for ‘grey gap years’, travel ranks as the second most popular retirement pursuit overall (44%) – behind occasional babysitting – and 18% of over-55s use some or all of the tax-free lump sum from their annuity to fund their travel plans.

Other favourite retirement pastimes are more modest and based closer to home, with 42% wanting to spend more time in the garden, 37% looking for more contact with family and 33% aiming to socialise more with friends.