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.’
17 Apr 2014
Financial data company Markit has released details of a survey indicating that families are less concerned about finances than they have been in five years.
The company uses a Household Finance Index to gauge consumer confidence. The index rose to 43.1 in April, its highest level since 2009 when it began. However, any figure below 50 indicates that households remain pressured.
Lower inflation is being hailed as the reason for improved perception of financial status among householders.
Senior economist for Markit, Jack Kennedy, said: ‘Easing the strain on household budgets was the slowest rise in prices paid for goods and services since the end of 2009, while future inflation expectations similarly weakened.
‘A long-awaited return to rising real wages is likely to boost consumer spending as we move through 2014, adding another piece to the jigsaw of the UK’s economic recovery’.
Recent figures show a 1.7% rise in average wages in the three months to February, while consumer price inflation fell to 1.6% in March.