UK pensioners 'see incomes rise'
The average UK pensioner is nearly twice as well-off financially now as they were back in 1979, a report from insurer Clerical Medical has said.
Average weekly pensioner income rose from £47 in 1979 to more than £300 by 2004, the study found.
However, after stripping out the impact of inflation, the average pensioner is now 97% better off than in 1979.
Much of the rise in income has come from personal and workplace pension savings, Clerical Medical said.
The amount of income coming from private pensions rose at three times the rate of income from the state pension, the study found.
Strong growth
Surprisingly, considering the developing UK pensions crisis, the period 1999 to 2004 has seen strong growth in pensioner incomes, according to Clerical Medical.
Average pensioner incomes rose 3.5% a year in the five years up to
2004. This compares to average annual rises of 2.5% in the 1980s and 2.7% in the 1990s.In addition, the group found that the gap between pensioner incomes and the working population had narrowed since 1979.
Pensioner incomes in 1979 were worth 48% of the UK average, by 2004 this had narrowed to 61%.
"There has been a significant shift in the balance between pension income sourced from the state and private pensions over the last 25 years," John Hiew, managing director of Clerical Medical Financial Services, said.
"Almost 70% of retired households now rely on their private pension arrangements to supplement the cost of living in retirement, compared with 40% in 1979," Mr Hiew added.
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