Pensioners’ income has seen a decline in the last two years, according to the latest Family Resources Survey for 2022-23.
In 2022-23, the average income for pensioner couples stood at £561 per week (after housing costs), with all pensioners averaging £387 per week. This marks a decrease from £310 and £195, respectively, in 1995.
The average income for all pensioners fell from £416 in 2020-21 to £387 in the most recent fiscal year. The survey also reveals a sharp decline in the proportion of retirees getting income-related benefits, which fell from 37 per cent in 1995 to 21 per cent in 2022-2023.
Furthermore, the difference in weekly income between unmarried male and female seniors remains, with unmarried males earning an average of £286 while unmarried females get £259.
AJ Bell head of public policy Rachel Vahey says: “After steadily increasing for over 20 years, UK pensioner incomes have dipped in recent years. There’s no doubt that the UK’s pensioners are significantly better off than previous generations – a combination of private pension and investment income has meant that considerably fewer pensioners are reliant on state benefits today compared to nearly 30 years ago.
“The survey shows that 70 per cent of pensioners today have some form of private pension income, giving them a boost to their income of an average of £199 a week; with a lucky 5 per cent receiving £1,000 a week or more.
“But it’s not all good news. Although pensioner incomes have generally been on the rise, they have suffered a setback in the past two years. The average income for all pensioners has fallen from a high of £416 in 2020-21 to £387 last year, and from £591 to £561 for couple pensioners. Coming at a time when the cost-of-living crisis has gripped the UK and pushed up a whole host of monthly costs, many pensioners will have been hit with a double blow of falling incomes and rising prices.
“There’s also disparity between different types of pensioners. Couple pensioners continue to be significantly better off than single pensioners. And men fare much better than women: on average single male pensioners receive a 10 per cent higher income than their female counterparts. Hopefully this trend can start to reverse as later generations of women receive more equal pay and save independently for their later lives.
“As the State Pension and the triple lock are back in the news today, many will be interested to see that the state pension continues to play a fundamental part in pensioners’ incomes. Nearly everyone – 98 per cent of pensioners – receives a state pension, often acting as the bedrock to their weekly income.”
