The median gross and disposable incomes for retirees have essentially stagnated over the past few years despite rising state pension payments, according to recent data from the Office of National Statistics (ONS).
According to the data, the median annual gross household income of retirees increased only marginally to £32,328, up from £32,302 the previous year, and remains lower than in 2020/21 (£33,337).
Similarly, median disposable income rose by just £74 to £29,728, which is also below levels seen in 2020/21 (£30,286) and 2015/16 (£29,853).
State pension rose by 4.1 per cent in April 2025, following the Triple Lock policy and is likely to rise to 4.7 per cent by April 2026.
Broadstone head of policy at leading independent consultancy David Brooks says: “At a time when debate continues to rage around pensioner benefits and the State Pension, it is interesting to see that median gross and disposable incomes for retirees have remained essentially stagnant, or even decreased, since the pandemic.
“It reflects the significant financial challenges posed by the cost-of-living crisis and potentially the beginning of more people entering retirement with less generous defined contribution pensions. These trends both remain prevalent, suggesting that any move to means-test the State Pension or remove the Triple Lock could noticeably and negatively impact pensioners’ incomes and, consequently, their standard of living.”