Data published by the Office for National Statistics (ONS) has revealed that retirement income has been ‘boosted’ by private and workplace pensions over the last 40 years.
The ONS found that 80% of retired UK households received income from a private pension in 2016, compared to just 45% of retired households in 1977.
It revealed that just 21% of retired households had an annual disposable income over £10,000 in 1977: in 2016, 96% of retired households had a disposable income of £10,000 or more.
The ONS also found that incomes have grown at a faster rate for older individuals than they have for the young.
Anna Dixon, Chief Executive at the Centre for Aging Better, said: ‘We have seen a dramatic and necessary reduction in pensioner poverty since the 1970s. Being financially secure is a key part of a good later life.
‘However, these averages mask inequalities. In particular, the growing disparity between those who have been unable to save into a pension and those who have not.’