“They highlight that benefit income, which includes the state pension, is the foundation of many pensioners’ income with the payments making up more than half of the total gross income for single pensioners (56%), while for pensioner couples it was 37%. The decision to pause the triple lock uprating from April for 12 months will therefore be viewed as a blow by many pensioners who are on course to experience a 3.1% increase as supposed to the 8% they would have experienced if it were kept in place. However, the Chancellor’s recent announcement confirming that the triple lock would be reinstated and applied to the 2023/24 state pension increase is positive and will provide much needed reassurance to many pensioners.
“The other main contributor to pensioner’s incomes was occupational pensions which accounted for 35% of couples’ income and 29% for single pensioners. These figures highlight the critical role that pensions play in people’s retirement and are a reminder of the importance of regular savings over the years.
“The figures also highlight the wide spread of incomes among pensioner households with older households more likely to be in the bottom fifth of incomes, compared to younger pensioner households potentially highlighting the challenge of making savings stretch into later life. When compared to the population as a whole, around 14% of pensioners are in the bottom fifth of incomes, while 23% of pensioner couples were in the top fifth. The numbers highlight that pensioners are not a homogenous group and that incomes vary both by age and household types so we need to avoid generalisations about their financial position.”
|
