Weekly income for pensioners, after housing costs, saw a modest rise of 3.6 per cent in the year to FYE 25, increasing from £439 to £455.
The latest DWP figures on Pensioners’ Incomes (FYE 1995–2025) show that pensioner couples continue to earn significantly more than singles, with an average weekly income of £650, which is almost double the £332 recorded for single pensioners.
Meanwhile, benefit income, including the state pension, remains the largest component of pensioners’ earnings, rising from 46 per cent to 47 per cent of gross income over the year, while occupational pensions fell from 29 per cent to 27 per cent.
Lumera commercial director data & dashboards Maurice Titley says: “Today’s figures show a modest but welcome uplift in pensioner incomes, with a 3.6 per cent increase over the past year offering some reassurance amid ongoing cost pressures.
“It is encouraging to see progress in overall income levels, and reforms such as targeted support, guided retirement and the MoneyHelper Pensions Dashboard should help to build on this trend, as people make more informed decisions about their financial futures.
“That said, the ongoing trend of a growing reliance on benefit income – including the state pension – now accounting for almost half of pensioners’ total income, is a clear signal that more needs to be done to strengthen private provision. Encouraging higher contributions, particularly earlier in working life, will be critical to improving long-term outcomes, as will other innovations in pension provision such as collective defined contribution (CDC) schemes. At the same time, schemes must ensure their technology and administration capabilities are robust enough to support members effectively as engagement with pensions continues to evolve.”
