Pensioner incomes have risen slightly, but inequality remains as couples earn significantly more than singles and many retirees still rely heavily on the state pension and other benefits.
According to Fidelity International, based on the latest DWP Pensioners’ Incomes data (FYE 1995–2025), couples earn substantially more than single pensioners and the state pension and other benefits remain a central source of income.
It highlights that much of this growth comes from increases in the state pension, which now makes up as much as 58 per cent of income for single pensioners.
Pensioner couples have an average weekly income of £650, almost double the £332 for single pensioners. Life events like bereavement or divorce can have a major financial impact, especially for women, who generally have lower incomes in retirement and rely more on benefits than men.
Additionally, many pensioners are still working, with earnings accounting for 17 per cent of income for couples and 7 per cent for singles. According to Fidelity International, some continue to work by choice, but for others it may be because they cannot afford to stop working.
There are also clear regional differences with pensioner couples in London and the South East having higher incomes than the UK average, while those in the East and West Midlands earn less.
Fidelity International personal finance expert Marianna Hunt says: “Automatic enrolment has brought millions into pension saving, but there are still significant gaps.
“State pension on its own is unlikely to provide the kind of retirement most people hope for. The data also points to a broader challenge: while many households are managing to put some money aside, far fewer are building meaningful investments that can grow over time and support them in later life.
“Overall, the figures paint a picture of a retirement landscape that is improving but remains deeply uneven. They reinforce the importance of building multiple sources of income beyond the state pension and planning for life’s uncertainties.”
