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.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

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

Why now is a good time to buy an annuity

Annuities are ‘back on the table’ after two years of rock bottom rates, according to Hargreaves Lansdown.

Short-term lender offers 0% interest loans to members

A lender offering interest-free loans in return for a membership fee has launched this month, giving people in...

Fixed rate savings: monthly or annual interest?

If you’re looking to lock your savings in a fixed rate product, you may need to decide between monthly or annu...

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.

YourMoney.com 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

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