The Pensioners' Incomes Series 2010-11 is published today.
The series contains estimates of the levels, sources and the distribution of pensioners’ incomes and examines the position of pensioners within the income distribution of the population as a whole.
The series includes information for gross income, net income Before Housing Costs and net income After Housing Costs. After Housing Costs estimates best reflect the income pensioners actually have to spend.
The publication is based on two household surveys. The latest information, for the financial years 1994-95 to 2010-11, comes from the Family Resources Survey (FRS).
All figures are given in 2010-11 prices and growth is described in real terms.
The main findings from the publication:
In 2010-11 the average net income for all pensioner units (pensioner couples and single pensioners together) was £340 After Housing Costs (£369 per week Before Housing Costs).
Between 1998-99 and 2010-11, average net income After Housing Costs increased by 40 per cent and Before Housing Costs the rise was 33 per cent in real terms. Over the last twelve years, average pensioners’ income has grown faster than average earnings, which grew by 11 per cent in real terms during the same period. Growth in average pensioners’ income since 1998-99 was driven mainly by increases in benefits, occupational pension income and earnings.
However, over the past year to 2010-11, average net income Before and After Housing Costs has fallen by around 5 per cent in real terms. Economic factors including low average earnings growth in the whole economy and high inflation in this time period have limited the general scope for income growth.
Differences amongst pensioners:
Differences by status
Average net income After Housing Costs for pensioner couples in 2010-11 was over twice that of singles.
In 2010-11 the average net income of pensioner couples was £467 per week After Housing Costs are taken into account and £493 per week Before Housing Costs. Between 1998-99 and 2010-11 the net income of pensioner couples grew by 31 per cent After Housing Costs (26 per cent Before Housing Costs).
The average net income of single pensioners was £223 per week in 2010-11 After Housing Costs and £256 per week Before Housing Costs. Between 1998-99 and 2010-11 the net income of single pensioners grew by 41 per cent After Housing Costs (32 per cent Before Housing Costs).
Differences by gender
The average net income of single female pensioners’ per week was approximately 82 per cent of single male pensioners’ net income per week After Housing Costs in 2010-11.
The average net income of single male pensioners was £257 per week in 2010-11 After Housing Costs and £291 per week Before Housing Costs.
The average net income of single female pensioners was £211 per week in 2010-11 After Housing Costs and £244 per week Before Housing Costs.
Differences by age
On average older pensioners had lower incomes than younger pensioners.
The average net income of pensioner couples with the head aged under 75 was £495 per week in 2010-11 After Housing Costs, and £522 per week Before Housing Costs. Single pensioners under 75 had £238 After Housing Costs, and £274 Before Housing Costs.
The average net income of pensioner couples with the head aged 75 or over was £401 per week in 2010-11 After Housing Costs and £422 per week Before Housing Costs. This was £211 After Housing Costs and £241 Before Housing Costs for single pensioners aged 75 or over.
Differences by age and gender
The average net income of single male pensioners under 75 was £271 per week After Housing Costs (£308 per week Before Housing Costs), single male pensioners 75 and over received £244 per week After Housing Costs (£275 Before Housing Costs).
The average net income of single female pensioners under 75 was £226 per week After Housing Costs (£261 Before Housing Costs), single female pensioners 75 and over received £199 per week After Housing Costs (£229 Before Housing Costs).
Steve Lowe, Director at the retirement income specialist Just Retirement, said: “Today’s findings show that pensioner income is again under pressure and that, perhaps unsurprisingly, there is huge differences depending on personal circumstances. Couples are receiving more than twice the income of individuals and the over 75s are receiving almost 20% less than younger retirees. All of these signs underline the importance of sound financial planning in the run up to retirement. We [the industry] will continue to work with the Government to make sure that regulated advice is at the heart of all retirement planning.”
To download the full report please click here
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