Pensioner Income
Net real incomes up by 25% in 8 years
Average real weekly income of pensioner units, United Kingdom/Great Britain
In the last 8 years average net incomes of pensioner units in Great Britain rose by 25 per cent after taking into account inflation. The average pensioner unit (pensioner couples and single pensioners) received £237 a week in net income in 2002/03. For pensioner couples the average was £327 per week compared with £177 for single pensioners.
The average net income of pensioners grew faster than that for non-pensioners between 1979 and 2002/03. In 1979, 47 per cent of pensioners were in the bottom fifth of the net equivalised income distribution. By 2002/03, this proportion had almost halved to 26 per cent. There are fewer pensioners in the bottom quintile once housing costs are taken into account
Based on the pensioner distribution of income (before housing costs), single female pensioners were slightly over-represented in the bottom fifth (22 per cent). Single men were more likely to be in the top fifth (24 per cent) than the bottom fifth (15 per cent).
Younger pensioners tend to have higher incomes than older pensioners because they are likely to receive more occupational pension and earnings income than older pensioners.
Older pensioners were more likely to be found towards the bottom of both the single pensioner and pensioner couples' income distributions. In 2002/03, 24 per cent of couples where the head was aged 75 or over were in the bottom fifth. The proportion of single pensioners of the same age in the bottom fifth was also 24 per cent.
The largest source of income for pensioners is state benefits (which include the state retirement pension). In 2002/03 the average pensioner unit received 51 per cent of its income from state benefits. This proportion rose to 60 per cent for single pensioners over the age of 75. Occupational pensions accounted for 27 per cent and investment income for 9 per cent. Low-income pensioners typically receive little income from personal pensions, investments or earnings and the majority of their income from social security benefits.
Percentage in bottom quintile of net income: by age of head, Before Housing Costs, 2002/03, Great Britain
Sources: Family Resources Survey 2002/03 for data on sources of income Family Expenditure Survey for historical data from 1979 to 1996/97
Notes: A pensioner unit is defined as a single (non-cohabiting) person over state pension age or a couple (married or cohabiting) where the man, defined as the head, has reached state pension age. State pension age is 65 years for men and 60 years for women. FRS data used for pensioners incomes is unequivalised. Statistics on pensioners' positions in the overall distribution are based on equivalised data.
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