New data reveals a notable decrease in pensioners’ average income over the past two years, with a drop of £1,500.
The Family Resources Survey for 2022-23 shows that pensioner couples had an average weekly income (after housing costs) of £561, and £387 for all pensioners in the same period.
This reflects a decline from the previous year, with weekly incomes decreasing from £591 for couples and £416 for all pensioners.
When comparing these figures to 1995, which marks the beginning of the Family Resources Survey pensioner income sample, weekly funds have only marginally increased over the 29 years.
In 1995, pensioner couples had an average weekly income of £371 and £195 for all pensioners.
Meanwhile, fewer pensioners received income-related benefits last year. Comparing the statistics from last year to those of 1995, the figure has decreased from 37 percent to 21 percent over the 29 years.
Additionally, the survey reveals that single male pensioners, averaging £286 a week, are notably better off than single women pensioners, who average £259 a week.
Rachel Vahey, head of public policy at AJ Bell, commented: “After steadily increasing for over 20 years, UK pensioner incomes have dipped in recent years.”
While there’s no doubt that the UK’s pensioners are significantly better off than previous generations, Ms Vahey noted: “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.”
She continued: “The survey shows that 70 percent 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 five percent receiving £1,000 a week or more.”
However, she said: “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 a disparity between different types of pensioners, Ms Vahey added.
She explained: “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 percent 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.
“Many will be interested to see that the state pension continues to play a fundamental part in pensioners’ incomes. Nearly everyone – 98 percent of pensioners – receives a state pension, often acting as the bedrock to their weekly income.”