British pensioners’ income soars by 60 per cent in 13 years as earnings gap between working families and retired couples narrows
- The average pensioners’ household saw payments of £27,283 last year
- This is an increase of more than £10,000 – or 59 per cent – since 2005-06
- The average working home earnings rose by 36 per cent over the same period
Retired households have seen their income surge by almost 60 per cent in the past 13 years – far more than those in work.
The average pensioners’ home saw payments of £27,283 last year – an increase of more than £10,000 or 59 per cent since 2005-06.
By contrast, the typical working household’s earnings rose by only 36 per cent over the same period, to £36,332, according to the latest figures from the Office for National Statistics.
The average pensioners’ household saw payments of £27,283 last year – an increase of more than £10,000 – or 59 per cent – since 2005-06
Although those in work have an average income greater than that of pensioners, the gap is closing.
And many working families face costs pensioners often do not, such as child care and mortgages.
Many people who retired before the financial crisis in 2008 have lucrative workplace pensions which increase in line with inflation every year.
And retirees also benefit from the so-called triple lock on state pensions. Introduced by the coalition government in 2010, it means that payments rise annually by whichever is higher – inflation, average wages or 2.5 per cent.
As a result, pensioners’ income from the state grows by at least as much as working familes’ pay and often more.
At the same time, workers across Britain have suffered a long period of stagnation in their incomes since the financial crisis. Many of them took pay cuts to avoid losing their jobs during the recession that followed the banking collapse, and productivity has also remained sluggish.
Many people who retired before the financial crisis in 2008 have lucrative workplace pensions which increase in line with inflation every year
The revelation comes after a House of Lords committee called for the scrapping of perks for older people to promote intergenerational fairness.
The peers recommended axing free bus passes and TV licences and doing more to help young workers instead. They also suggested ending the triple lock. However, the proposals drew a backlash from charities.
Caroline Abrahams, from charity Age UK, said: ‘Young people may well need more help but we disagree that this should be at the expense of the older generation.’
She explained: ‘This underplays the extent of need among older people and skates over the great difficulty of ensuring a targeted approach which actually reaches those older people who are the most vulnerable.
‘We reject the notion that helping younger and older people is an either/or. In practice, many at both ends of the age spectrum need our society’s support and an advanced 21st century economy like the UK is well placed to provide it.’
Paxo: My generation is luckiest ever
Jeremy Paxman has claimed his generation is the ‘luckiest that ever lived’ – thanks to the ‘opportunities’ afforded to them
Jeremy Paxman has claimed his generation is the ‘luckiest that ever lived’ – thanks to the ‘opportunities’ afforded to them.
Launching his first column for over-50s magazine Saga, the broadcaster said its readers have had ‘the most extraordinary lives’.
The former Newsnight presenter, 68, said he was ‘depressed’ when he was first contacted by Saga.
He said: ‘They had noticed that I had passed 50 – the prime of life – and now wanted to see if I would be one of their customers. “No,” I shrieked. “I’m not giving up yet!”’
Paxman, who two years ago left partner Elizabeth Clough for Jillian Taylor, a divorcee 30 years his junior, added: ‘The truth is, there’s no need to give up – the average life expectancy in Britain is just over 80.
‘Most of us who have reached 50 or beyond in our society have had a better life than we had any right to expect. Just look at the opportunities available to us…
‘We have grown into maturity accustomed to clean water, clean clothes, warmth, enough food and good education. We are probably the luckiest generation that ever lived.’