27 March 2025
If you are covering the latest pensioners' incomes statistics from the Department for Work and Pensions, please see the following comment from Thomas Lambert, financial planner at Quilter:
“This morning’s pensioners’ incomes statistics released by the Department for Work and Pensions show the average pensioner income now sits at £407 per week, up by just £15 compared to £392 in 2010. When compared to the steep rise from £206 in 1995 to £392 in 2010, it is clear there has been a marked slowdown despite the considerably higher cost of living.
“This average weekly income drops to £282 for single pensioners and rises to £595 for pensioner couples. In addition, pensioners age 75 and over had lower incomes than those age 75 and under, coming in at £372 and £455 respectively.
“While real terms income levels have stalled, a far smaller percentage of pensioners received income related benefits in 2024, sitting at 20%, down from 31% in 2010 and 37% in 1995. This decrease highlights the impact of rising incomes from the State Pension and private pensions, reducing eligibility for benefits. Unsurprisingly, single pensioners were much more reliant on this state support to bolster their pension income.
“The triple lock has come under increasing scrutiny in recent years, and there is no doubt that it will be placing a growing burden on government coffers. However, it also seems clear that the state pension is still heavily relied on, and pensioner incomes might not have been able to hold level with 2010 for so long without its support.
“What’s more, as the coming generations move into retirement and the age of defined benefit schemes comes to an end, it is likely to reveal a significant gap in retirement provision and pensioner incomes may decline as a result.
“We appear to be nearing a juncture where there will soon be an inevitable review of the triple lock. One potential reform to the triple lock is to link increases to earnings, with a temporary CPI indexation when inflation exceeded wage growth but generally falling in line with long term wage increases, helping align pension growth with the wider economy and creating a more predictable and affordable system. However, any change must be handled carefully. The state pension is the single largest area of welfare spending and a vital source of income for millions.”
