You are here: Home - Retirement -

One in five retired couples are ‘pensioner millionaires’

Written by: Emma Lunn
A fifth of pensioner couples have a weekly income of £988, which would cost more than £1m if bought through an annuity.

Analysis of government figures by pensions firm Aegon found the richest 20 per cent of pensioners, equivalent to 840,000 couples, have an average net income (after income tax, National Insurance and council tax) of £988 a week or £51,376 a year. These government figures include all sources of pensioners’ income such as pensions, investments, earnings and benefits.

In order to replicate a weekly income of £988 from savings alone, a couple retiring today at age 65 would need to have a shared pot worth £1,152,250.

The analysis also highlights that the income gap between the richest and poorest pensioner couples has increased over the past 10 years.

While the richest have seen their incomes increase by 15 per cent from £858 to £988, the poorest have seen a lower 14 per cent increase from £234 to £267 for the same period.

This means the current difference between the income of the top and bottom 20 per cent of pensioner couples has risen by almost £100 from £624 to £721 per week.

Steven Cameron, pensions director at Aegon, said: “Over the past 10 years, pensioner couples in the highest income distribution band have seen their average weekly income increase by 15 per cent to £988. A weekly income of this size would cost £1,152,250 to buy through an annuity which means this large proportion of retired couples can legitimately consider themselves ‘pensioner millionaires’.

“In fact while many people may assume their house is their most valuable asset, for many it could actually be their pension.

“However, whilst the top fifth of pensioner couples have seen their income rise to £988 per week, the figures show the bottom fifth have an average weekly income over £700 less at just £267 per week per couple, or £134 per individual, which is substantially under the full rate of the new state pension, currently £168.60 per week.

“Many of these pensioners may have reached state pension age before 5 April 2016 and be receiving the ‘old’ state pension or have had insufficient National Insurance records to qualify for the full 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.

10 ways to claw back money from HMRC

For the millions of people who put off filing their tax return, here are 10 incentives to get it done.
10 ways to claw back money from HMRC

Extra three penalty points adds £200 to car insurance premiums

Anyone flouting driving laws can expect to pay more for insurance, and analysis reveals an extra three penalty...
Extra three penalty points adds £200 to car insurance premiums

Unused credit cards expose holders to greater fraud risk

Brits with unused or emergency credits cards are twice as likely to fall victim to identity theft or fraud, re...
Unused credit cards expose holders to greater fraud risk

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.

Money Tips of the Week

Read previous post:
How to get more for your holiday money

Shopping around for your holiday money could save you up to 39 per cent on rip-off rates.