In 2001, pensioner incomes were around £70 a week lower than working age incomes. However, income growth of individuals who turned 65 in 2001 was 7% higher in 2014.
The rise in average pensioner income comes from people retiring in recent years.
Factors driving the rise in pensioner income:
higher levels of pensioners in some kind of employment – almost a fifth of pensioners remain in some kind of paid employment after reaching retirement age
high levels of home ownership – 73% of pensioners currently own their home
generous private pension pots – occupational pension pots are the biggest source of rising pensioner income.
The value of pensioner benefits income has increased by 8% since 2001, accounting for a quarter of income growth.
Adam Corlett, economic analyst at the Resolution Foundation, said: “Of course, not all pensioners can draw on these income sources, which is why the state pension will always be the main income for many pensioners.
“The big challenge we face as a society is to ensure that the record incomes that a new generation of pensioners are enjoying are not a one-off gift, and can endure for future generations too.”
Talk to Condies about your retirement income.