The Department for Work and Pensions report that pensioners are earning less than they did nine to ten years ago. Despite a rising cost of living, retirees received just £304 per week in 2017/18. In 2009/10 pensioners received £307 per week.
The seemingly positive weekly pay is distorted, as statistics are impacted by couples in retirement, as they receive £454 between them. A single pensioner receives less than half this amount, with a weekly income of £213.
The DWP also reported that more than two-thirds of pensioners received earnings from a private pension. This represents a 5% increase from the start of DWP records. This might seem a small amount, considering the push on workplace and private pensions.
Therefore, there may be a welcome reduction in people living in poverty in later life. However, people in the Age UK study were finding life tough and were just getting by (Age UK). One woman of 82 noted, “Yes, you’ve got to make every penny count, haven’t you?” Therefore, hoping to live in more comfort will likely mean a private pension scheme to supplement the state pension. It is important to seek financial advice and to start retirement planning as early as seems reasonable.
The content in this article was correct on 19th May 2019. You should not rely on this article to make important financial decisions. Teachers Financial Planning offers advice on pensions for teachers and non-teachers. Please use the contact form below to arrange an informal chat with an advisor and see how we can help you.