You are here: Home -

Rise of the pension millionaires

Written by: Paloma Kubiak
The richest 20% of retired couples are pension millionaires, according to analysis of government figures.

This is equivalent of 840,000 couples, who have an average weekly income of £936 – over £48,000 a year – including pension, investments and the state pension.

In order to gain a £936 a week income from personal pension savings alone, a couple retiring today at the age of 65 would need to have a pension pot of £1.03m (used to buy an annuity), according to Aegon.

Its research revealed that the income gap between the richest and the poorest pensioners has also increased over the past decade.

While the richest couples have an average weekly income of £936, the poorest 20% have a weekly income of £257.

Further, the richest pensioners have seen their incomes increase 21% over the last ten years from £774, while the poorest have seen only a 15% increase from £224.

Over the same period the average pensioner couple has seen their weekly income increase 18% from £487 to £576.

Steven Cameron, pensions director at Aegon, said: “A fifth of retired couples could legitimately consider themselves pensions millionaires given the size of their incomes.

“It’s no wonder we’re often said to be living in a golden age for pensioners and many of these people will have benefited from the provision of defined benefit pensions and above inflation increases to the state pension.

“As our figures highlight, this golden age does not apply to everyone and there’s a big and growing difference between the weekly incomes of the richest 20% of pensioners and the poorest 20%. Defined benefit pension schemes while common in the past were by no means universal and many of those pensioners on the lowest incomes will have missed out on these arrangements.”

Related: See’s Guide to getting a better annuity rate.



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.

The inflation-beating savings accounts

Savers will have to tie up their money for at least four years to get a rate that will beat or match inflation...

Should you go private rather than make an insurance claim?

If you’ve experienced a minor bump with another driver, you may be tempted to settle the costs privately witho...

Gifting money to children: what parents need to know

The Bank of Mum and Dad is a growing industry, but many parents are still confused over the rules on giving a...

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...

A quick guide to guarantor loans – in association with Guarantor Loan Comparison

Considering a guarantor loan or becoming a guarantor yourself? Read our essential guide...

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. Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

  • According to @YourMoneyUK the #Govt is considering a Care ISA’ which would be exempt from #inheritancetax. Could th…
  • RT @unitetheunion: “We need tough action against unscrupulous debt collection agencies who prey on people’s misery to ramp up the debt thro…
  • RT @unitetheunion: “We need tough action against unscrupulous debt collection agencies who prey on people’s misery to ramp up the debt thro…
Read previous post:
inheritance tax
How to beat the dividend allowance cut

The dividend allowance will be cut in April but there are ways to shield your portfolio from tax.