You are here: Home - Retirement - Retiring now - News -

Pensioner incomes outpace those of working families

0
Written by:
13/02/2017
Pensioner incomes have overtaken those of working age families for the first time, according to a report by the Resolution Foundation.

The think tank said the main drivers of pensioner income growth are more people working later in life, owning their home and having access to generous private pensions.

The report said typical pensioner households are now £20 a week better off than typical working age households, after housing costs.

In 2001 typical pensioner incomes were £70 a week lower than working age incomes.

However, this strong growth is not the result of a boom time for all pensioners, with most finding that their personal situation changes little from year-to-year, the report said.

While typical incomes across the pensioner population have grown by over 30% since 2001, the typical income of someone who turned 65 in that year was only 7% higher by 2014.

Adam Corlett, economic analyst at the Resolution Foundation, said: “The main driver of pensioner income growth has been the arrival of successive new waves of pensioners, who are more likely to work, own their home and have generous private pension wealth than any previous generation.

“Of course, not all pensioners can draw on these income sources, which is why the state pension will always be the main income for many pensioners. We can’t assume either that young people today will be able to draw upon the kind of wealth that recent pensioners have accumulated, given the recent fall in home ownership and decline in generous defined benefit schemes.

“The big challenge we face as a society is to ensure that the record incomes that a new generation of pensioners are enjoying are not a one-off gift, and can endure for future generations too.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

After an award-winning health insurance provider?

Winner of best online health care provider in the YourMoney.com Awards 2015

Insurance Experts: Are you fully insured? Click here to get a quote.

For a free quote or to speak with an insurance expert call 0800 1218744

‘Should I cancel my unused credit cards?’

As spring is upon us it’s the perfect time to take a look through your wallet. This could mean clearing out ol...
‘Should I cancel my unused credit cards?’

Countdown to Article 50: should you buy your holiday money now?

The government will invoke Article 50 tomorrow, officially paving the way for the UK to leave the EU. Brexit h...
Countdown to Article 50: should you buy your holiday money now?

‘No one over 50 should be investing in ISAs any more’

As the end of the tax-year looms, one advisory firm says it makes more sense for savers in their 50s to put an...
‘No one over 50 should be investing in ISAs any more’

Ryanair jetting towards US flights for £10

Ryanair is on course to achieve its long-held ambition of offering transatlantic flights to the US – and the...

Investing in car parks: a good vehicle for income seekers?

As the search for income continues, many investors are turning to alternatives, with car parks becoming increa...

Tesco expected to post significant write-offs

Tesco is predicted to unveil the biggest loss in its 100-year history, according to analysts.

Results round-up: Companies to watch this week

Mulberry and more will face the music this week.

Product launches of the week

Select Property Group, Schroders, Leeds Building Society and more have exciting news this week.

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
rio tinto
Stock of the week: Rio Tinto

Graham Spooner, investment research analyst at The Share Centre, picks FTSE 100 giant Rio Tinto as stock of the week.

Close