Pensioners’ incomes beat inflation
2 Jul 2014 12:35 PM
British pensioners have seen their income grow
for the first time in real terms in 3 years – with the triple lock
protection of the State Pension and more older people choosing to stay in
work.
New
official statistics show that, in 2012/13, average gross incomes of pensioner
couples and singles grew to £477 – an above inflation rise –
with state benefits accounting for 44% of the total.
The
government’s State Pension triple lock ensures that pensioner incomes are
now protected against inflation – increasing each year by whichever is
the highest out of prices, average earnings or 2.5%.
Last year this meant that the Basic State Pension
increased by 5.2% and Pension Credit by 3.9%, compared with the 3.1% increase
in Retail Price Index (RPI) inflation.
The
Pensioners’ Incomes Series for 2012/13 also reveals that, over the past
14 years, average net incomes for pensioners after housing costs have been
taken into account grew by 37% in real terms. Contributing to this rise is a
greater number of pensioners choosing to remain in work, with earnings among
this age group growing by 62%.
Minister for Pensions Steve Webb said:
I
am proud of our work to protect pensioners, the success of which is borne out
in these figures.
The
triple lock has marked a profound shift in how the state supports pensioners
and it means that 12.7 million people will be over £400 a year better off
by the end of this Parliament.
Alongside the guarantee of a strong State Pension, we
are also seeing more older people choose to phase their retirement in a way
which suits them. This government’s historic decision to end the
discrimination of the mandatory retirement age has made that possible for
thousands of people.
Figures released today show:
- benefit income, which includes the State Pension, has
increased by 27% since 1998/99
- in
2012/13 state benefits accounted for 44% of pensioners’ incomes,
occupational pensions made up 27%, earnings 17%, investment income 7%, and
personal pensions 4%
- since 1998/99, the fastest growing sources of income are
earnings, which has increased by 62% in this time, and personal pension income,
which has increased by over 250%
- 28%
of pensioner units (single pensioners or couples) received at least one
income-related benefit in 2012/13, such as Pension Credit, Housing Benefit or
Council Tax Benefit
- 22%
of pensioner units were in receipt of disability benefits – pensioner
couples received an average £88 a week from disability benefits in
2012/13 compared with £69 for single pensioners
The
triple lock builds on the government’s ongoing protection of key benefits
for older people including:
- free eye tests
- free NHS prescriptions
- free bus passes
- free television licences for those aged 75 and
over
- Winter Fuel Payments
Cold Weather Payments were permanently increased from
£8.50 to £25 in 2010.
More information
Read The
Pensioners’ Incomes Series United Kingdom, 2012/13
Between 2011/12 and 2012/13, gross mean income grew from
£475 to £477. Net mean income before housing costs grew from
£395 to £397 and net mean income after housing costs grew from
£363 to £364.
Mean net income after housing costs has risen faster
than before housing costs. After deducting housing costs, mean net income has
grown by 37% since 1998/99 compared with 32% before housing
costs.
Pensioners’ mean net income has grown faster than
incomes for the whole population over the last 14 years.
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